Which of the Following Is a True Statement

question 65

Multiple Choice

Which of the following is a true statement?

• A)While researchers found it difficult to reject the random walk hypothesis for exchange rates on empirical grounds,there is no theoretical reason why exchange rates should follow a pure random walk.
• B)While researchers found it easy to reject the random walk hypothesis for exchange rates on empirical grounds,there are strong theoretical reasons why exchange rates should follow a pure random walk.
• C)While researchers found it difficult to reject the random walk hypothesis for exchange rates on empirical grounds,there are compelling theoretical reasons why exchange rates should follow a pure random walk.
• D)none of the options

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Definitions:

Price

The sum of money needed to buy a product, service, or asset.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to changes in the market or economic conditions.

Demand

The quantity of a product or service that consumers are willing and able to buy at various prices during a specified period of time.

Industry Entry

The process of a new competitor or firm entering into an industry or market.