Changes in a currency's exchange rate adjust immediately to ...

[colton]

Changes in a currency's exchange rate adjust immediately to insure that
 
  A) official settlements account parity always prevails.
  B) net exports always equal zero.
  C) interest rate parity always prevails.
  D) current account balance equals zero.
  E) purchasing power parity always prevails.

Question 2

If the slope of the aggregate expenditure curve is 0.5, then the expenditure multiplier equals
 
  A) 5. B) 0.5. C) 2. D) 3. E) 4.

[dantucker]

Answer to Question 1

C

Answer to Question 2

C