To an Economist, the Question of Whether the Right Type

question 17

Multiple Choice

To an economist, the question of whether the right type of criminals are in jail hinges on

• A)the likelihood they will commit their particular crime ever again if released.
• B)whether the jail cell would be better utilized housing someone more dangerous.
• C)the severity of the offenses the criminals committed to get them in jail.
• D)whether criminals show remorse.

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Definitions:

Interest Rate Parity

An economic theory stating that the difference between interest rates in two countries is equal to the expected change in exchange rates between their currencies.

Relative PPP

Relative Purchasing Power Parity, a theory which states that the rate of inflation between two countries will be offset by an equal but opposite change in the exchange rate.

International Fisher

An economic theory stating that the difference in nominal interest rates between two countries is directly proportional to the expected change in the exchange rates between their currencies.

Strengthening

Generally refers to the process of becoming stronger or more firm, often used in financial contexts to describe currencies or economies that are improving in value or performance.