Extensive Empirical Studies Have Shown That

question 67

Multiple Choice

Extensive empirical studies have shown that

• A) there is only a short-run relationship between a country's relative inflation rates and changes in exchange rates; no long-run relationship exists.
• B) there is a long-run relationship between a country's relative inflation rates and changes in exchange rates.
• C) that there exists both short-run and long-run relationships between a country's relative inflation rates and changes in exchange rates.
• D) a country's relative inflation rates and changes in exchange rates are not related to each other.

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Definitions:

Independent Variable

In experimental and statistical research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Dependent Variable

In research, the variable being tested and measured, expected to change as a result of manipulations to the independent variable.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Manipulated

Being controlled or influenced in an unfair or deceitful way, often without awareness of the manipulation.