In the long run, ______. ( )
A: exchange rates are unlikely to obey relative PPP when all disturbances occur in the output markets.
B: exchange rates obey absolute PPP when all disturbances occur in the output markets.
C: exchange rates obey relative PPP when all disturbances occur in the output markets.
D: exchange rates obey absolute PPP when all disturbances are monetary in nature.
A: exchange rates are unlikely to obey relative PPP when all disturbances occur in the output markets.
B: exchange rates obey absolute PPP when all disturbances occur in the output markets.
C: exchange rates obey relative PPP when all disturbances occur in the output markets.
D: exchange rates obey absolute PPP when all disturbances are monetary in nature.
举一反三
- According to the interest rate parity theory, when the forward foreign exchange rate is premium, it means that the domestic interest rate( ) A: is equal to the foreign exchange rate B: lower than foreign exchange rates C: higher than foreign exchange rates D: Not sure
- Exchange rates are equalized in different locations due to __. A: arbitrage. B: government intervention in foreign exchange markets. C: free trade in goods and services. D: the actions of importers and exporters.
- Under floating exchange rates, short-run exchange rates are primarily determined by national differences in real interest rates and shifting expectations of future exchange rates.
- In what way do banks act as "market - makers" in foreign exchange markets A: By buying foreign currencies. B: By quoting exchange rates to customers. C: By avoiding the risks of the market. D: Both A and B
- The stock market is important because A: It is where interest rates are determined. B: It is the most widely followed financial market in the United States. C: It is where foreign exchange rates are determined. D: all of the above.