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

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