In Practice

question 49

Multiple Choice

In practice

• A) changes in national price levels often tell us relatively little about exchange rate movements.
• B) changes in national price levels raise the exchange rate.
• C) changes in national price levels lower the exchange rate.
• D) changes in national price levels often tell us about exchange rate movements.
• E) changes in national price levels match identical changes in the exchange rate.

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Definitions:

Low-pass

A filter designed to allow signals with a frequency lower than a certain cutoff frequency to pass through while attenuating frequencies higher than the cutoff frequency.

Notch Filter

A filter designed to remove or significantly reduce the strength of a specific frequency or range of frequencies from a signal.

Band-rejection

A filter that blocks frequencies within a certain range, allowing frequencies outside that range to pass through.

Bandpass Filter

An electronic device or circuit that allows signals between two specific frequencies to pass through while attenuating signals at frequencies outside this range.