An effective exchange rate is a:( )
A. spot rate
B. forward rate
C. flexible exchange rates
D. weighted average of the exchange rates between the domestic currency and the nation's most important trade partners
查看答案
The relative PPP theory gives better results ( )
A. in the long run than in the short run
B. when structural changes take place
C. the greater is the level of commodity aggregation
D. in tests including developed and developing countries
A shortage of pounds in U.S. under a flexible exchange rate system results in ( )
A. a depreciation of the pound
B. a depreciation of the dollar
C. an appreciation of the dollar
D. no change in the exchange rate
The theory postulates that the exchange rate should be equal to the ratio of price levels in the two nations is called( )
A. absolute purchasing power parity
B. relative purchasing power parity
C. law of one price
D. none of the above
If the rate of inflation in the United States is 4% and the rate of inflation in the United Kingdom is 3%, relative purchasing power would predict that( )
A. the pound will appreciate relative to the dollar.
B. the pound will depreciate relative to the dollar.
C. both the dollar and the pound will depreciate due to inflation.
D. both the dollar and the pound will appreciate due to inflation.
微信支付 
支付宝支付