Which of the Following Is Not True Regarding IRP, PPP

question 57

Multiple Choice

Which of the following is not true regarding IRP, PPP, and the IFE?

• A)IRP suggests that a currency's spot rate will change according to interest rate differentials.
• B)PPP suggests that a currency's spot rate will change according to inflation differentials.
• C)The IFE suggests that a currency's spot rate will change according to interest rate differentials.
• D)All of the above are true.

---

Definitions:

Social Phobia

An intense fear of social situations.

Agoraphobia

A fear or phobia of public places.

Intense Fear

A strong, uncontrollable, and often irrational reaction to a specific object, situation, or event, leading to avoidance or distress.

Palpitations

The feeling of having a rapid, fluttering, or pounding heartbeat.