Which One of the Following Formulas Correctly Defines the Relationship

question 88

Multiple Choice

Which one of the following formulas correctly defines the relationship to which it is associated?

• A) Interest rate parity: (F1)/(S0) = (1 + RFC)(1 + RCDN)
• B) Relative PPP: E(St) = [S0][1 + (hCDN - hFC)]t
• C) International Fisher effect: RCDN - hCDN = hFC - RFC
• D) Uncovered interest rate parity: E(St) = [S0][1 + (RFC - RCDN)]t
• E) Unbiased forward rate: F3 = (S0)

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Definitions:

Variable-Ratio Schedule

A type of reinforcement schedule in which a response is reinforced after an unpredictable number of responses, promoting high and steady response rates.

Fixed-Ratio Schedule

A reinforcement strategy in behaviorism where a response is reinforced only after a specified number of responses.

Reinforcement

In behavioral psychology, a process by which a behavior becomes more likely to occur because it is followed by a reward or the removal of an unpleasant stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period without exposure to the conditioned stimulus.