true or false

34. RELATIVE FORM OF PPP STATES IN THE ABSENCE OF INTERNATIONAL BARRIERS, CONSUMERS WILL SHIFT THEIR DEMAND TO WHEREVER PRICES ARE LOWEST. 35. PPP THEORY PRESUMES THAT EXCHANGE RATE MOVEMENTS ARE DRIVEN COMPLETELY BY THE INFLATION DIFFERENTIALS BETWEEN 2 NATIONS. 36. DEVIATIONS FROM PPP EXIST I 37. DEVIATIONS FROM PPP EXIST BECAUSE EXCHANGE RATE MOVEMENTS ARE NOT DRIVEN SOLELY BY A CHANGE IN THE DIFFERENTIAL BETWEEN US INFLATION RATE AND THE FOREIGN COUNTRY'S INFLATION 38. NEED TO CONSIDER THE CHANGE IN THE DIFFEREENTIAL BETWEEN US INTEREST RATE AND FOREIGN NATIONS PLUS CHANGE IN THE US INCOME LEVEL AND FOREIGN NATIONS PLUS CHANGE IN GOVT CONTROLS PLUS CHANGE IN EXPECTATIONS OF FUTURE EXCHANGE RATES, THEREFORE, EXCHANGE RATE MOVEMENTS CANNOT BE AS SIMPLE AS PPP THEORY SUGGESTS. 39. AN MNCS FORECASTS OF EXCHANGE RATE MOVEMENTS DO NOT INFLUENCE ITS MANAGERIAL DECISIONS. 40. FORECASTING EXCHANGE RATES IS NOT A DIFFICULT TASK 41. FIRMS FORECAST EXCHANGE RATES TO HEDGE DECISIONS, FOR SHORT TERM INVESTMENT DECISIONS, FOR CAPITAL BUDGETING DECISIONS, FOR EARNINGS ASSESSMENTS AND FOR LONG TERM FINANCING DECISIONS. 42.THE NUMEROUS METHODS AVAILABLE FOR FORECASTING EXCHANGE RATES CAN BE CATEGORIZED INTO 4 GROUPS. TECHNICAL, FUNDAMENTAL MARKET BASED AND MIXED