Explaining Exchange Rate Behavior in the Long Run Assumes That

question 3

Multiple Choice

Explaining exchange rate behavior in the long run assumes that changes in price levels and real interest rates affect nominal exchange rates so that interest parity and PPP hold. Short-run deviations from PPP may be explained by an alternative theory called the:

• A) relative PPP approach.
• B) asset approach to exchange rate determination.
• C) long-run equilibrium approach.
• D) law of one price.

Evaluate the effectiveness of research techniques in analyzing social media data.

Understand the concept and importance of social intelligence in business.

Identify the four layers of the social intelligence system and explain their functions.

Recognize various research methodologies and their applications in social media.

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Definitions:

Just-In-Time Production

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.