If the Purchasing Power Parity (PPP) holds, even in the short run, then: Group of answer choices Quoted exchange rates should decrease over time Quoted exchange rates should remain constant over time Real exchange rates should decrease over time Real exchange rates should remain constant over time Real exchange rates should increase over time

Real exchange rates should remain constant over time.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider.

Purchasing power parity (PPP) can be defined as an economic theory of exchange rate determination which states that, the exchange rates between currencies of two different countries are in equilibrium when their price level of a fixed basket of goods and services (purchasing power) are the same.

According to the flexible-price monetary model which was developed by Frenkel and Mussa in 1976, it states that the prices of goods are flexible while the purchasing power parity (PPP) is always constant i.e the real exchange rate is always constant over a specific period of time.

Hence, if the Purchasing Power Parity (PPP) holds, even in the short run, then real exchange rates should remain constant over time.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'