In the short run, there are large and persistent deviations ...

[ARLKQ]

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.

[kxciann]

Answer to Question 1

.A

Answer to Question 2

.D

[ARLKQ]

TYSM

[jackie]

Gracias!