Multiple Choice
Economists have developed models to predict changes in exchange rates based on inflation trends. To guide forecasts of exchange rates, economists calculate the average:
A) speed of convergence.
B) PPP.
C) interest parity.
D) price deviation.
Correct Answer:

Verified
Correct Answer:
Verified
Q87: The difference between the simple monetary model
Q88: Zimbabwe's hyperinflation reached _in 2008.<br>A) 1,231,000,000%<br>B) 231,000,000%<br>C)
Q89: If a nation experiences 10% inflation and
Q90: (Table: Exchange Rates and Prices) Suppose a
Q91: With an annual inflation of 3.5%, prices
Q93: Factors that could weaken the relationship between
Q94: The law of one price requires:<br>A) trade
Q95: According to the long-run monetary model of
Q96: (Table: Exchange Rates and Prices) Suppose a
Q97: If nominal income in a nation decreases,