If the Nominal Interest Rate Parity Condition Is Not Met

question 26

Multiple Choice

If the nominal interest rate parity condition is not met,

• A)imports will exceed exports.
• B)the return from holding domestic assets must exceed the expected return from holding foreign assets.
• C)the return from holding domestic assets must be less than the expected return from holding foreign assets.
• D)the return from holding domestic assets must be greater or less than the expected return from holding foreign assets.

---

Definitions:

Childhood

The stage of life from birth to adolescence, characterized by rapid physical, cognitive, and emotional development.

Adulthood

The period in human life after adolescence, characterized by full physical development and legal responsibility for one’s actions.

Child-rearing Practices

The methods and strategies used by parents and caregivers to raise and educate children.

Developmental Psychologist

A developmental psychologist studies the psychological growth and changes that occur in individuals throughout their lifetimes, from infancy to old age.