Author Question: Statistical studies of the relationship between interest rates and later depreciation rates show ... (Read 43 times)

dakota nelson · **on:** Jun 30, 2018

Statistical studies of the relationship between interest rates and later depreciation rates show that

A) the interest difference has been a very bad predictor in the large swings of exchange rates.
B) the interest difference has been an accurate predictor in the large swings of exchange rates.
C) the interest difference has correctly predicted the direction in which exchange rates would change.
D) the interest difference has not yet been studied as a predictor in the large swings of exchange rates.
E) the interest difference is unrelated to the large swings of exchange rates.

Question 2

Refer to the graph below. The movement from point 1 to point 2 is stimulated by a disequilibrium in which there is domestic ________ and ________.

A) overemployment; trade surplus
B) unemployment; trade surplus
C) overemployment; trade deficit
D) unemployment; trade deficit
E) inflation; unemployment