Author Question: A random walk model can more accurately predict exchange rates as compared to a sophisticated ... (Read 68 times)

P68T

  • Hero Member
  • *****
  • Posts: 509
A random walk model can more accurately predict exchange rates as compared to a sophisticated forecast
 
  A) always.
  B) for forecasts up to a year away.
  C) for forecasts longer than a year away.
  D) never.
  E) because of the predictability of exchange rates.

Question 2

Which of the following is NOT a result of a permanent fall in foreign demand on one country's exports under floating exchange rate?
 
  A) The DD curve shifts to the left due to reduction of aggregate demand.
  B) The AA curve shifts upwards due to the increased expected long-run exchange rate.
  C) a reduction in output by a smaller degree compared to temporary fall in demand
  D) depreciation in home country's currency
  E) a raised level of unemployment



ciecieme

  • Sr. Member
  • ****
  • Posts: 331
Answer to Question 1

B

Answer to Question 2

E



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

For a complete list of videos, visit our video library