Please ANSWER ALL questions NOT one of them with EXPLANATION:

1. A country whose currency would need to appreciate in real terms in order for absolute PPP to hold is likely to have export industries in favorable competitive positions.

A.True

B.False

2. If a good costs $200 in U.S. and the exact same good costs 140 in Europe, what is the implied purchasing power parity value of the U.S dollar?

3. Assume that inflation in U.S. is 8%, and inflation in Mexico is 11%. If the U.S. dollar appreciates 4% nominally against the peso, in real terms the dollar has approximately?

A. Depreciates 1% versus the peso

B. Depreciates 4% versus the peso

C. Appreciates 4% versus the peso

D. Depreciates 7% versus the peso

E. Appreciates 1% versus the peso

3. Last year, the USD depreciated 2% in real terms versus the MXN. Inflation in the US was 2% and inflation in Mexico was 7%. In nominal terms, the USD approximately?