According to the theory of interest rate parity, if a country’s currency has an appreciation trend or pressure, the country can maintain a higher interest rate to cope with it()
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According to the theory of relative purchasing power parity, if domestic inflation is higher than that of foreign countries, the nominal exchange rate should appreciate()
The impact of the appreciation of a country’s currency on domestic prices is()
A. rising
B. falling
C. unchanged
D. not sure
The floating exchange rate system allows exchange rates to fluctuate freely as the supply-demand relationship in the foreign exchange market changes. Monetary authorities in various countries have nev
According to the theory of purchasing power parity, a country’s long-term inflation will lead to its currency()without taking other factors into account
A. devaluation
B. appreciation
C. unchanged
D. undecidable