Which of the following is NOT linked together by uncovered interest parity?
A. The domestic interest rate
B. The foreign interest rate
C. The current forward exchange rate
D. The current spot exchange rate
Answer: C
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The maximum change in the money supply due to an initial change in the excess reserves banks hold is called the:
A. fractional reserve banking system. B. money multiplier. C. required reserve ratio. D. open market operations.
The last time the United States experienced hyperinflation was during:
A. the Great Depression. B. the Civil War. C. World War II. D. the oil crisis of the 1970s.
(Consider This) The hedonic treadmill refers to a phenomenon where:
A. people can't improve their economic well-being because prices increase as fast as wages. B. people can't get out of debt because credit card companies use anchoring to get consumers to carry large balances on their accounts. C. increasing our level of consumption doesn't make us any happier in the long term. D. feelings of loss offset our feelings of gain, leaving us no happier in the long term.
All of the following shift the consumption function upward EXCEPT
A. an expectation of better economic conditions. B. an increase in wealth. C. a decrease in the rate of interest. D. an increase in income.