If the Exchange Rate Between Two Countries Is Expected to Remain

question 31

Multiple Choice

If the exchange rate between two countries is expected to remain fixed at its current rate,then

• A)output growth rates must be equal in the two countries.
• B)price levels must be equal in the two countries.
• C)inflation rates must be equal in the two countries.
• D)nominal interest rates must be equal in the two countries.
• E) none of the above

---

Definitions:

Manufacturing Company

An enterprise engaged in the industrial production of goods through the processing of raw materials.

Senior Managers

Top-level executives who are responsible for managing an organization's major functions.

General Staff Meeting

A gathering of employees from various departments within an organization to discuss overarching goals, progress, and issues.

Drill Down

An investigative process that involves breaking down information into more detailed and specific parts to gain deeper understanding.