Statistical studies of the relationship between interest rates and later depreciation rates show that
A) the interest difference has been a very bad predictor in the large swings of exchange rates.
B) the interest difference has been an accurate predictor in the large swings of exchange rates.
C) the interest difference has correctly predicted the direction in which exchange rates would change.
D) the interest difference has not yet been studied as a predictor in the large swings of exchange rates.
E) the interest difference is unrelated to the large swings of exchange rates.
A
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Discuss the effects of an unexpected decrease in the inflation rate policy on unemployment in the short run. If the reduction in inflation is permanent, what happens in the long run?
What will be an ideal response?
The command economy of World War I (1914–18) possessed which of the following traits?
(a) Decentralized decision-making in the markets (b) The creation of many state agencies (c) Volunteers for the armed forces (d) Centralized decision making by bureaucrats
Protecting property rights:
A. is essential to economic growth. B. encourages people to invest in capital. C. by governments will likely increase productivity. D. All of these are true.
What type of market has few sellers?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly