The Idea That the Exchange Rate Adjusts to Keep Buying

question 19

Multiple Choice

The idea that the exchange rate adjusts to keep buying power constant among currencies is called:

• A) the unbiased forward rates condition.
• B) uncovered interest rate parity.
• C) the international Fisher effect.
• D) purchasing power parity.
• E) interest rate parity.

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Definitions:

Pressuring

Refers to the act of attempting to influence or compel someone into a decision or action by using force, arguments, or persuasion.

Audience Objections

the concerns, questions, or opposition that an audience or potential customer might have in response to a proposal, presentation, or marketing effort.

Persuasive Message

Communication designed to influence or convince the audience of a specific viewpoint or to take a particular action.

Addressed

The act of directing attention or communication to a specific person or issue.