Premium Essay

Absolute Ppp

In:

Submitted By jnguyen
Words 1032
Pages 5
Absolute PPP * A bundle of goods should cost the same in Canada and the US once you take the exchange rate into account * Any deviations from this (if a basket of goods is cheaper in Canada than in the US) , then we should expect relative prices and the exchange rate between the 2 countries to move towards a level at which the basket of goods have the same price in the two countries.
Relative PPP * The differences in the rates of inflation between two countries * Suppose the rate of inflation in Canada is higher than that in the US, causing the price of a basket of goods in Canada to rise. PPP requires the basket be the same price in each country, so this implies that the Canadian dollar must depreciate vis a vis the US dollars. The percentage change in the value of the currency should then equal the difference in the inflation rate between the two countries.

Exchange Rates:
Nominal exchange rate simple states how much of one currency can be traded for a unit of another currency.

The real exchange rate, describes how many of a good or service in one country can be traded for one of that good or service in another country. * For example, a real exchange rate might state how many European bottles of wine can be exchanged for one US bottle of wine.

Real exchange rates can be thought of as answering the following question: If you took an item produced domestically, sold it at the domestic market price, exchanged the money you got for the item for foreign currency, and then used that foreign currency to purchase units of the equivalent item produced in the foreign country, how many units of the foreign good would you be able to buy?

The units on real exchange rates, therefore, are units of foreign good over units of domestic (home country) good, since real exchange rates show how many foreign goods you can get per unit of domestic

Similar Documents

Premium Essay

Robin Li: a Gentleman Leader

...Robin Li: A Gentleman Leader Fan Yang 2215384 There is no doubt that Baidu is the biggest Chinese search engin in the world. Compared with 1999, when Baidu had just been found, it was a only small company with 7 seven people, nowdays, Baidu occupied nearly 80 percents of the market share of search engin in China. Most people would like to own the success of Baidu to the initiator, Robin Li. Before Robin Li founded Baidu, he was just a network engineer, but now, he has already become an excellent leader. As a leader, Robin has many good qualities. He is knowlegable, cautious, patient, full of passion and keeping appropriate development speed of Baidu. There is nearly no rapid change or ups and downs in the development of Baidu. The development is stable and sustained. What gives others biggest impression in Robin Li's leadership is his gentleman-style leardership.In ancient China, " gentleman " is used to discribe somebody's moral perspective. The "gentleman-style leadership " refered here means that the Robin Li's leadership is base on the fact that human's nature is good, and he is trying to develop the company and create value for society consciously and actively in a gentleman's demeanor, which makes the atmosphere in Baidu free, harmonious and actively. Robin Li has tried his best to prevent being so serious in the company. For example, if Robin Li was in office, his door is generally open, unless there is an important conversation. This is to let the staff know...

Words: 1253 - Pages: 6

Premium Essay

My Christian Worldviews

...Carla Jensen CWV November 13, 2011 Todd Forrest My Very Own Worldview The three components that make up my worldview are God, Knowledge, and Ultimate Reality, because they shape shaped my thoughts, experiences, education, and life decisions. Therefore, my belief in God has shaped my entire life through my thoughts, experiences, and life decisions. My Thoughts: My thoughts have always included God, for as long as I can remember. I can remember feeling the presence of God around me as a very, very small child, and He has always been there to support me with His love and guidance. I don’t think of myself as a religious person, but as a person who would like to live my life the way God wants us to. I have always been a “Pollyanna” type, because I always believed that there is good in everyone and everything. It is really not practical to believe that people will always think and behave the same as me, which is why I have spent many years learning about others – how they think, what they do, and why they do it- as a way to better understand the human race. I have learned that many self proclaimed Christians can be the most evil of people, because going to church and reading the bible does not make a person act like Jesus Christ. People should not have to act “as if”, but just be like Him. I am old enough to have seen some pretty hypocritical folks in my lifetime that would chastise others for not going to church...

Words: 2562 - Pages: 11

Premium Essay

Robbin Li

...Robin Li: A Gentleman Leader Fan Yang 2215384 There is no doubt that Baidu is the biggest Chinese search engin in the world. Compared with 1999, when Baidu had just been found, it was a only small company with 7 seven people, nowdays, Baidu occupied nearly 80 percents of the market share of search engin in China. Most people would like to own the success of Baidu to the initiator, Robin Li. Before Robin Li founded Baidu, he was just a network engineer, but now, he has already become an excellent leader. As a leader, Robin has many good qualities. He is knowlegable, cautious, patient, full of passion and keeping appropriate development speed of Baidu. There is nearly no rapid change or ups and downs in the development of Baidu. The development is stable and sustained. What gives others biggest impression in Robin Li's leadership is his gentleman-style leardership.In ancient China, " gentleman " is used to discribe somebody's moral perspective. The "gentleman-style leadership " refered here means that the Robin Li's leadership is base on the fact that human's nature is good, and he is trying to develop the company and create value for society consciously and actively in a gentleman's demeanor, which makes the atmosphere in Baidu free, harmonious and actively. Robin Li has tried his best to prevent being so serious in the company. For example, if Robin Li was in office, his door is generally open, unless there is an important conversation. This is to let the staff know...

Words: 1253 - Pages: 6

Free Essay

Absolute Truth

...Absolute Truth can be defined as "the real state of facts and reality”, an accepted statement or proposition. Some suggest that there is no true reality, only perceptions and opinions, while others argue that there must be some absolute basis. With this being said, we can say that there are two diametrically-opposed beliefs related to absolute truth: There are no absolutes that define reality. Everything is relative, and thus there is no actual reality. There is ultimately no authority for deciding if an action is positive or negative; right or wrong. There are absolutes that define what is real and what is not. Thus, actions can be deemed right or wrong based upon how they measure up against these absolute standards. I’m a firm catholic believer and the catholic perspective on absolute truth should be determined by the one who is the ultimate authority, or maker, of all things. So for any of those who believe in God the absolute truth is derived from properly understanding who God is and what His "will" is for His creation. Propositions, in logic, are statements that can be labeled as either true or false. All of the examples you just heard and saw are complete statements that you can say are either true or false. Propositions are the objects of attitudes and the primary carriers of truth and falsity. This stipulation rules out certain candidates for propositions, including thoughts which are not sharable, and concrete events or facts, which cannot be false. Reference:...

Words: 261 - Pages: 2

Premium Essay

Effects on People

...1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. y=hx=tan⁡(-2x) 13. 14. y=fx=cscx+2 15. 16. y=gx=-x 17. 18. y=hx=x-3 19. 20. y=f(x)= _1_ x 22. 23. y=h(x) = ln (x+2) 24. f(x)lnx+3 25. 28. y=f(x) =lnx2 30. 31. y=hx=1x+1 32. Domain: (-1,∞) 33. 34. 35. 36. 37. 38. 41. 42. 44. y=gx=secx+5 45. 46. y=hx=--x 47. 48. y=fx=x+5 49. 51. y=hx=8-xx(x+5) 52. 53. y=gx=-x-3 54. 55. y=hx=-7x2+2x-9 56. 57. B. Convert the following data using converters and other web calculators. 1. 176 centimeter = 69.291 338 583 inch 2.153 meter = 0.095 069 792 412 mile 3. 176 kilometer = 577 427.821 52 feet 4. 2 387 kilometer = 1 483.213 035 9 mile 5. 35 degree Celsius = 95 degree Fahrenheit 6. -40 degree Celsius = -40 degree Fahrenheit 7. 35 degree Fahrenheit = 1.6666667 degree Celsius 8. 135 inch = 3.429 meter 9. 35 yard = 32.004 meter 10. 35 degree Celsius = 308.15 kelvin 11. -40 degree Celsius = 233.15 kelvin 12. 35 degree Fahrenheit = 274.8166667 kelvin 13. 135 kelvin = -216.67 degree Fahrenheit 14. 200 kelvin = -73.15 degree Celsius 15. 25 mile/hour (mph) = 11.176 meter/second 16. 10 025 mile/hour (mph) = 4 481.576 meter/second 58. 17. 100 123 456 mile/second = 580 079 099 420 000 meter/hour 18. P657= $15.7111 19.$10,345 = P430,254 20.$ 12, 345 = euro 10,059...

Words: 376 - Pages: 2

Premium Essay

Biurebb

...Chapter 1 Practice Worksheet: Matter and Measurement 1) What are the vertical columns in the periodic table called? _families or groups_______________ 2) What are the horizontal rows in the periodic table called? __periods______________ 3) Name the following groups and list three elements (with symbols) in each one: Group Name Elements and symbols Group 1A _Alkali metals______________ _Na, K, Rb_______ Group 2A _Alkaline Earth metals_______ _Mg, Ca, Sr______ Group 7A _Halogens_________________ _F, Cl, Br________ Group 8A _Noble Gases_______________ _Ar, Kr, Ne______ 4) Use metric prefixes to calculate the following conversions: a. 156 cm = __1.56_______________ m b. 4.870 km = _4.870 x 105___________ cm c. 7809 mL = __7.809 x 10-6_________ ML d. 98.412 GL = _9.8412 x 1012________ cL e. 1234 μm = _1.234 x 10-3___________ m f. 675 nm = _6.75 x 10-7_____________ m g. 0.00549 kg = _5.49 x 103___________ mg 5) How many significant figures are in each of the following measurements? a. 0.002960 g __4____ b. 1000.00 g __6____ c. 100,000 g __unknown____ d. 1.000 x 102 g __4____ e. 1.20980 g __6____ 6) Write the result of each calculation. Remember to include units and the correct number of significant figures. a. (200.5 m + 2.59 m) x 60.7 m = 1.23 x 104 m2 b. (3.3 x 10-4 g) ÷ (9.9 x 10-5 mL) = 3.3 g/mL c. (1.0 x 105 s) x (15.0 m/s) = 1...

Words: 662 - Pages: 3

Premium Essay

Psy 315 Chapter 4 Practice Problems 11,14,18

...can take on different values. For example 0 degrees Celsius or Fahrenheit (0 degrees Celsius does not mean there is no temperature but it is different from 0 degrees Fahrenheit.) B) rank order- variables that are individual observations that can be put into order from smallest to largest, even though the exact values are unknown. An example of this would be shirts, small, medium and large shirts. C) Nominal- variables which are also called categorical variables. They classify observations into a small number of categories. Examples are 1) "types of property" can include houses, condos, Co-ops, or bungalows. Another example 2) Gender or race D) Ratio Scale- is measured data with a zero point and provides information relative to an absolute zero. An example of this is a person's weight. The scale starts at 0 and when you step on it, the amount goes up starting from 0 to the amount of weight on it. (It has to start at 0). E) Continuous- variables that are numeric and can be any number (positive or negative). Examples of a continuous variable can be red blood cells, body temperature, or any other continuous readings such as body weight. (15) Following are the speeds of 40 cars clocked by radar on a particular road in a 35- mph zone on a particular afternoon: 30, 36, 42, 36, 30, 52, 36, 34, 36, 33, 30, 32, 35, 32, 37, 34, 36, 31, 35, 20, 24, 46, 23, 31, 32, 45, 34, 37, 28, 40, 34, 38, 40, 52, 31, 33, 15, 27,...

Words: 747 - Pages: 3

Free Essay

C Programmi

...ngNicholas, 07-015 Turbo C++ Algorithms & Coding 1. Finding the absolute value of an integer Algorithm (single alternative control flow) Absolute Value ( ) Coding #include void main () { { 1. input n; int n; 2. if (n43) 5. print : Second Class; 6. else if (mark > 32) 7. print : Third Class; 8.else 9. print: Fail; } 3. Determining the roots of quadric equation Algorithm Quadric Equation ( ) { 1. input a, b, c ; 2. d= b*b- 4*c*a ; 3. if (d 59) printf("first class"); else if (mark>44) printf("Second class"); else if (mark>32) printf("third class"); else printf("fail"); } Coding #include #include void main() { float a,b,c,x1,x2,d; scanf ("%f%f%f",& a,& b,& c); d=(b*b-4*c*a); if (d79) 3. print : A+; 4. else if (n >74) 5. print : A; 6. else if (n > 69) 7. print : A-; 8. else if (n >64) 9. print: B+; 10. else if (n >59) 11. print : B; 12. else if (n > 54) 13. print : B-; 14. else if (n >49) 15. print: C+; 16. else if (n >44) 17. print: C; 18. else if (n > 39) 19. print: D; 20. else 21. print :F; } Coding #include void main() { int n; scanf("%d",& n); if(n>79) printf("%d is A+",n); else if(n>74) printf("%d is A",n); else if(n>69) printf("%d is A-",n); else if(n>64) printf("%d is B+",n); else if(n>59) printf("%d is B",n); else if(n>54) printf("%d is B-",n); else if(n>49) printf("%d is C+",n); else if(n>44) printf("%d is C",n); else if(n>39) printf("%d is D",n); else printf("%d is F",n); } 5. Finding whether a number is even or odd: Algorithm (double alternative control flow)...

Words: 610 - Pages: 3

Free Essay

Relatively Perfect

...Relatively Perfect Some individuals can identify musical notes without the aid of a give tone. They are not limited to pitch-naming, the can also perform several musical skills, such as identifying a song’s key signature, labeling all tones of a given chord, mentally notating a piece and recognizing the pitches of everyday sounds like a dog’s bark of a phone’s ring. This ability can be achieved through practice. It is said that ear-trained people cringe when they hear specific songs san out-of-tune. Although they are known to be sensitive around sounds, their hearing is no different from an “average” person’s. This musical ability is known as “perfect pitch”. The ear can be very sensitive to music since music is composed of different pitches. Pitch perception is the way a person “observes” music. There are two different pitch perceptions. Relative pitch perception, or often shorten to “relative pitch”, is basically defined as the hearing ability to identify pitches with the aid of a given pitch; it is also the ear’s ability to recognize the range between two notes which is called the interval. On the other hand, perfect pitch perception—or perfect pitch—does not need help from a reference note. A person who has perfect pitch and relative pitch could have been training through the years. Or he is born with perfect pitch and only attained relative pitch through practice. He could also be a conservatory student who mastered the art of pitch perception because of the...

Words: 1449 - Pages: 6

Free Essay

Critically Assess the Virtues and Shortcomings of Britain’s ‘Un-Codified’ Constitution

...Critically assess the virtues and shortcomings of Britain’s ‘un-codified’ Constitution Britain are one of the few countries in the world that still posses and un-codified constitution, other states that posses un-codified constitutions are New Zealand and Israel. A constitution is a set of rules which guidelines what the people of the nation and the government have the rights to do, these rules or guidelines are normally printed in one sovereign place. An un-codified constitution differs from this as is not one sovereign book or piece of writing that outlines the rules of the state. This short answer will assess the strengths and weakness of Britain having an un-codified constitution. The first strength to consider is the fact that our un-codified constitution is more flexible then a codified constitution. Many nations find it difficult to pass legislation because the constitution holds the government accountable and protects the individuals. Example of this could be after terrorist attacks Britain was able to quickly pass legislation detaining terror suspects for longer period of time, where as other nations constitutions protected the individuals liberties and prevented their governments from detaining suspects for long periods of time. From the first argument we can see that flexibility is a strength of an un-codified constitution, however it can also be a weakness. Without the codified constitution there is no checks on the government other then the opposition, a...

Words: 579 - Pages: 3

Premium Essay

Thermodynamics Chapter 1

...position, energy, and so on, is called the state of the system.   The system’s properties determine its state. A given state of a system is reproduced when all its properties are the same. • – – Extensive E t i property: the properties that depend on th size and total mass of a t th ti th t d d the i dt t l f system. Intensive property: independent of the size of a system.   Examples: pressure, temperature. Specific properties: they are given per unit mass or per defined mass in the system. Dr. Tang @ MWSU 2 1.3 Temperature (1) • The temperature of a system: a measure of the random motion of the molecules in the system. – The Celsius, Fahrenheit, Kelvin, and Rankine temperature scales represent the conventional and absolute temperature scales, respectively. – Celsius and Kelvin are SI units; Fahrenheit and Rankine are English units. units – Celsius (centigrade) and Fahrenheit temperatures are...

Words: 2599 - Pages: 11

Premium Essay

Mth133 Unit 4– Individual Project – D

...MATH133 Unit 3 – Individual Project – C 1) Solve the following equations algebraically. You must show all your work. Learn how to type math roots and fractions by clicking on the link in the assignment list. Alternately, you may type [pic] as cuberoot(x) and show raising to the nth power as ^n, like x 3 is typed x^3. a) [pic] Answer: t = 8 Show your work here: T to the power of (2/3)* (3/2) = 4 to the power of (3/2) = 2 to the power of 2 * (3/2) = 2 to the power of 3 = 8 b) [pic] Answer: x = 32 Show your work here: The power of 5 square of x = 3 – 1 = 2 so x = 2 to the power of 5 = 32 c) [pic] Answer: x= 5/ 11 Show your work here: 3(x - 1) *2/3 =2*3*(x - 1) - 3(x - 1) (5x - 3)/(x - 1) 2(x-1) = 6(x - 1) - 3(5x - 3) 2x -2 =6x - 6 - 15x + 9 11x =2 - 6 + 9 =5 x=5/ 11 2) Solve algebraically and check your potential solutions: a) [pic] Answer: x = 2 Show your work here: [pic] [pic] X = 2: square root of 2 +2 then subtract 2 = 0 this answer works X = -1: square root of -1 + 2 then subtract (-1) = 0 this answer doesn’t work So x = 2 b) [pic] Show your work here: 4(x - 2) – x =-2 then 4x – 8 – x = -2 so 3x = 6 then x=2 What potential solution did you obtain? Explain...

Words: 551 - Pages: 3

Premium Essay

Hypothermia Term Paper

...Isabelle Elisa Perez Professor A. Custer Human Biology 1050 4 November, 2013 Hypothermia -"the Bad" In Cleveland, Ohio we experience low temperature throughout the Winter. Temperatures and wind chills that are sometimes below average or zero. With these chilling temperatures people are at exposure of undergoing hypothermia. The normal internal body temperature is approximately 98.6 degrees fahrenheit. When undergoing hypothermia, the internal body temperature has decreased below 95 degrees fahrenheit or 35 degrees celsius. When the body undergoes hypothermia the nervous system, cardiovascular system, and endocrine system are affected. As environmental temperatures decrease there is a reduction in heat conservation and production. To increase the amount of heat conservation and production the hypothalamus send signals to motor neurons. As a physiological response the body begins to shiver and blood vessels constrict. The heart and liver usually generates most of the body's heat production but as internal body temperatures decrease as will its heat production. To increase the amount of heat conservation and production, and avoid neurological damage the heart and liver will shut down. As a response brain activity, breathing, and heart rates will decrease. Immediately afterwards physiological and neurobehavioral affects such as confusion and fatigue may set in. Other than environmental factors, biological attributes, and medical conditions can cause hypothermia...

Words: 251 - Pages: 2

Free Essay

Monarchy

...Constitutional Monarchy When you’re starting a government you want a strong but fair government that also makes the people in the country to have an option on how to run the country they live in. The reason why I choose a constitutional monarchy gives the people the rights of a democracy but is also has a royal family that doesn’t change and is the face of that country. There are a couple of changes that I would make to improve the way it is set up. There has to be ground rules for the type of government to be really effective. This government structure must have either a bill of rights or a constitution on what powers each person in this government will have and how much power the monarch will have. This system would allow the monarch to serve as head of its government and the monarch will represent the country. When you have a constitutional monarch the king and queen they would be the ones who travel to different countries and help with the relationship with other countries. They will have a more effect on other counties because they have more power than a secretary of state would because they represent the country instead of representing a president of a country who was elected. The Monarch would save money on election because the king or queen would be the ones to represent the country for life or until they can do the job and their succors would be a person in their family to carry on their legacy. The constitutional monarch will have elected officials to run the...

Words: 778 - Pages: 4

Premium Essay

Managerial Statistic

...BMS1024 MANAGERIAL STATISTICS ASSIGNMENT The objective of this assignment is to test your understanding in the lessons learnt in Topics 1 until 10. It is also designed to test and enhance your critical thinking skills. Please follow the respective due date given below. Monday; 29th April 2013 before 5 p.m. to your respective tutor (Week 8) The assignment carries 20% of your coursework marks. Instructions: 1) This is a grouped assignment with a maximum of 4 members from the same lecture section. 2) The printed-out assignment must be submitted latest by the stated deadline. 3) Be sure to include the Assignment Cover Sheet which has been signed by you and your members. A penalty of 10% will apply for each day thereafter unless an extension of time has been granted by your lecturer before the due date. 4) The assignment must be typed written in the Microsoft Work in a report format. Handwritten or soft copy assignment is not acceptable. There is no restriction on the number of pages, font type, font size etc. You may include relevant Excel tables, graphs and charts if necessary. The quality of report presentation should be worthy of submission to your employer or project manager. Some marks will be deducted for submitting a sloppy report. 5) Be reminded that plagiarism is a serious offense. Any assignment that has been plagiarized from the Internet or from the other classmates will receive ZERO marks! 6) Refer to the Excel file to solve the cases. HH 1 BMS1024 ...

Words: 839 - Pages: 4