Assume the Spot Exchange Rate Is £

question 31

Multiple Choice

Assume the spot exchange rate is £.6229.The expected inflation rate in the U.K.is 3.8 percent and in the U.S.it is 2.9 percent.What is the expected exchange rate three years from now if relative purchasing power parity exists?

• A)£.5391
• B)£.6399
• C)£.6062
• D)£.6285
• E)£.6233

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Definitions:

Immanent Justice

Immanent Justice is a cognitive bias, particularly in children, where it is believed that moral behavior is always rewarded and immoral behavior is always punished, naturally or supernaturally.

Moral Development

The growth of an individual's understanding of the principles of right and wrong and the application of this understanding to behavior.

Autonomous Morality

The stage of development where individuals follow internal moral principles, rather than obeying external rules and authority.

Heteronomous Morality

A stage in moral development where children base their moral judgments on the dictates of authority figures.