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