______________ Is a Theory Describing How the Level of Exchange

question 163

Multiple Choice

______________ is a theory describing how the level of exchange rates is determined; _____________ describes how exchange rates change over time.

• A) Absolute purchasing power parity; uncovered interest parity.
• B) Uncovered interest parity; absolute purchasing power parity.
• C) Uncovered interest parity; unbiased forward rates.
• D) Relative purchasing power parity; exchange rate risk.
• E) Absolute purchasing power parity; relative purchasing power parity.

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