The Theory That Exchange Rates Are Related to Difference in the Level

question 10

Multiple Choice

The theory that exchange rates are related to difference in the level of prices between countries is known as:

• A) contagion.
• B) exchange rate regime.
• C) purchasing power parity.
• D) law of two prices.
• E) relative parity.

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Definitions:

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Sociable

Exhibiting a willingness or tendency to engage with others in a friendly manner.

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Physical and mental symptoms that occur after stopping or reducing intake of a substance that was used heavily and regularly.

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Involuntary, rhythmic muscle contractions resulting in shaking movements in one or more parts of the body.