According to the purchasing power parity theory, a change in relative interest rates between two countries must cause a change in exchange rates.
a. true
b. false
b. false
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A company is considering the purchase or the rental of a new machine. An increase in the interest rate
A) increases the likelihood the company will buy the machine. B) increases the likelihood the company will rent the machine. C) has no effect on the likelihood that the company will buy the machine. D) has no effect on the likelihood that the company will rent the machine.
________ in the foreign interest rate causes the demand for domestic assets to decrease and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
Even though the difference in labor-force participation rates of U.S. males and females has narrowed, the labor-force participation rate of males remains higher than that of females
a. True b. False Indicate whether the statement is true or false
Which of the following is not a central bank?
a. The Bank of England b. The Bank of Japan c. The Bank of America d. The Federal Reserve