Which one of the following formulas expresses the absolute purchasing power parity relationship between the U.S. dollar and the British pound?

Which one of the following formulas expresses the absolute purchasing power parity relationship between the U.S. dollar and the British pound?    A.  S0 = PUK × PUS B.  PUS = Ft × PUK C.  PUK = S0 × PUS D.  Ft = PUS × PUK E.  S0 × Ft = PUK × PUS Refer to section 21.3

31.

Which of the following conditions are required for absolute purchasing power parity to exist? I. goods must be identical II. goods must have equal economic value III. transaction costs must be zero IV. there can be no barriers to trade    A.  I and III only B.  II and IV only C.  I, III, and IV only D.  I, II, and III only E.  I, II, III, and IV Refer to section 21.3

32.	Absolute purchasing power parity is most apt to exist for which one of the following items?    A.  lumber B.  computer C.  silver D.  automobile E.  cell phone Refer to section 21.3

33.

Relative purchasing power parity:    A.  states that identical items should cost the same regardless of the currency used to make the purchase. B.  relates differences in inflation rates to differences in exchange rates. C.  compares the real rate of return to the nominal rate of return. D.  explains the differences in real rates across national boundaries. E.  relates future exchange rates to current spot rates. Refer to section 21.3