The ___________________________ theory states that the same basket of goods should have the same price when measured in common currency (after exchange rates).

Group of answer choices

relative form of interest rate parity

absolute form of interest rate parity

absolute form of purchasing power parity

relative form of purchasing power parity

A strong dollar is normally expected to cause:

Group of answer choices

less exports and more imports

more exports and less imports.

less exports and less imports

more exports and more imports.

Which one of the following statements is most likely to be true?

Group of answer choices

central bank members always prefer a strong currency.

central bank members always prefer a weak currency.

a central bank of a country with a slow economy is likely to want a strong currency but after it strengthens it may prefer a weak currency.

a central bank of a country with a slow economy is likely to want a weak currency but after it strengthens it may prefer a strong currency.