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Author Question: In the short run, there are large and persistent deviations between actual exchange rates and ... (Read 51 times)

ARLKQ

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on: Jun 30, 2018
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. Central bank intervention in the foreign exchange market and sticky prices.
  b. Discretionary monetary policy.
  c. Discretionary fiscal policy.
  d. Widely different inflation rates in the two nations.
  e. All of the above.

Question 2

The exchange rate / is an example of a:
 a. Real, effective exchange rate.
  b. Real, bilateral exchange rate.
  c. Nominal, effective exchange rate.
  d. Nominal, bilateral exchange rate.


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kxciann

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Reply #1 on: Jun 30, 2018
Answer to Question 1

.A

Answer to Question 2

.D


ARLKQ

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

diana chang

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Reply 3 on: Yesterday
Wow, this really help

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