The Idea That flOating Exchange Rates Will Equate the Buying

question 188

Multiple Choice

The idea that floating exchange rates will equate the buying power of national currencies is called

• A) the equation of exchange.
• B) the balance of payments.
• C) Say's Law.
• D) purchasing power parity theory.

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Definitions:

Psychodynamic

A theoretical approach that emphasizes the influence of the unconscious mind and childhood experiences on behavior and mental states.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Cognitive

Refers to processes related to thinking, knowing, remembering, and communicating.

Behavioral

Relating to or concerned with the actions or activities of living organisms towards their environment.