Which of the Following Is Not True Regarding IRP, PPP

question 57

Multiple Choice

Which of the following is not true regarding IRP, PPP, and the IFE?

• A)IRP suggests that a currency's spot rate will change according to interest rate differentials.
• B)PPP suggests that a currency's spot rate will change according to inflation differentials.
• C)The IFE suggests that a currency's spot rate will change according to interest rate differentials.
• D)All of the above are true.

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Definitions:

Universal Instantiation (UI)

A principle in logic stating that what is true of everything in a particular class must also be true of any specific member of that class.

Simplification (Simp)

The process of making something less complicated or easier to understand.

Disjunctive Addition (Add)

A rule in propositional logic that allows the introduction of an additional disjunct to an existing disjunction.

Double Negation (DN)

A rule of equivalence in propositional logic permitting the following substitution: p :: ~~p.