In the short run, there are large and persistent deviations between actual exchange rates and exchange rates predicted using purchasing power parity because of:
a. Discretionary monetary policy.
b. International capital flows could cause short-term differences.
c. Discretionary fiscal policy.
d. Widely different inflation rates in the two nations.
e. None of the above.
.B
Economics
You might also like to view...
The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 20 units per day?
A) plant A B) plant B C) plant C D) plant D
Economics
If the government spends less than what it receives in taxes during a given interval, then the result is
A) a balanced budget. B) an entitlement. C) unrealized public debt. D) a government budget surplus.
Economics