The average duration of unemployment tends to be longer, the higher the unemployment rate.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Interest rate parity can be summarized by which of the following equilibrium conditions?
a. The foreign interest rate must equal the domestic interest rate plus the expected inflation.
b. The foreign interest rate must equal the domestic interest rate.
c. The foreign interest rate must equal the expected change in the exchange rate.
d. The domestic interest rate must equal the foreign interest rate plus the expected change in exchange rate.
e. The domestic interest rate must equal the foreign interest rate minus any expected inflation.
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