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"You always clam up when I ask you what's wrong," Iris tells her boyfriend. Iris is probably making this frequency judgment because she can remember a few times that her boyfriend wouldn't tell her what was bothering him. Iris is using the __________ heuristic.
Absolute Purchasing Power Parity
A theory stating that price levels between two countries should be equivalent, when expressed in a common currency, meaning the exchange rate between two currencies should equal the ratio of the countries' price levels.
Exchange Rate
The exchange rate specifies how much one currency can be traded for another, reflecting the relative values between them.
International Fisher Effect
A theory stating that the difference in nominal interest rates between two countries is equal to the expected change in exchange rates.
Expected Percentage Change
An estimation of the degree to which a specific variable such as price, cost, or investment value is anticipated to vary over a certain period.
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