There Is Strong Empirical Support for

Multiple Choice

There is strong empirical support for

A) purchasing power parity as a guide to one-year forward exchange rates for low-inflation countries
B) covered interest parity when interest rates are risk-free
C) uncovered interest parity, augmented by risk premiums, as a guide to spot market exchange rates
D) using purchasing power parity together with uncovered interest parity to predict currency appreciations and depreciations
E) none of the above