Statistical studies of the relationship between interest rates and later depreciation rates show that
A) the interest difference has been a very bad predictor in the large swings of exchange rates.
B) the interest difference has been an accurate predictor in the large swings of exchange rates.
C) the interest difference has correctly predicted the direction in which exchange rates would change.
D) the interest difference has not yet been studied as a predictor in the large swings of exchange rates.
E) the interest difference is unrelated to the large swings of exchange rates.
A
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Consumption expenditures do not include household purchases of
A) medical care. B) durable goods. C) new houses. D) education.
Refer to Figure 5.1. All else equal, an increase in the capital stock will cause a
A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.