If Exchange Rates Adjust to Reflect Inflation Differentials Across Countries,then

question 6

Multiple Choice

If exchange rates adjust to reflect inflation differentials across countries,then:

• A) the law of one price will always hold.
• B) no one will use forward currency markets.
• C) interest rates will be equal across countries.
• D) PPP is said to hold.

Distinguish between binding and persuasive precedents, and identify examples of each.

Understand the role of equitable principles and remedies in the judicial system.

Differentiate between courts of law and courts of equity, and identify the types of remedies each can grant.

Describe the influence of public policy on legal decisions and the concept of governmental policy based on societal values.