Which of the Following Refers to the Theory That the Real

question 14

Multiple Choice

Which of the following refers to the theory that the real interest rate in Canada should equal that in the rest of the world?

• A)the Fisher effect
• B)the theory of Ricardian equivalence
• C)the theory of purchasing power parity
• D)interest rate parity

---

Definitions:

Dementia

A chronic or persistent disorder of the mental processes caused by brain disease or injury and marked by memory disorders, personality changes, and impaired reasoning.

Environmental

Relating to the natural world and the impact of human activity on its condition.

Apolipoprotein E

A protein involved in the metabolism of fats in the body, important in the development of Alzheimer's disease and cardiovascular disease.

Neuritic Plaques

Abnormal clusters of protein fragments and cellular material that form in the brains of individuals with Alzheimer's disease and other neurodegenerative conditions.