The interest parity condition requires that:

A) all countries have the same interest rate.
B) there is a unique exchange rate for every output level.
C) purchasing power parity hold.
D) interest rates are fixed in the short run.
E) the money supply is held constant.


B

Economics

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Vertical integration has no effect on the internal organization of a firm; it only affects the outside markets

a. True b. False

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Suppose there is a decrease in aggregate demand. If the Fed wants to stabilize output it could

a. buy bonds. These purchases also move the price level closer to its original level. b. buy bonds. However these purchases move the price level farther from its original level. c. sell bonds. These sales also move the price level closer to its original level. d. sell bonds. However these sales move the price level farther from its original level.

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