The Balassa-Samuelson Model About Exchange Rates Suggests That If the Brazilian

question 49

Multiple Choice

The Balassa-Samuelson model about exchange rates suggests that if the Brazilian real is undervalued by 44%, it would take ____ years for the real to appreciate by half of the original amount of undervaluation at the rate of ___ per year.

• A) 5; 4.4
• B) 4; 5.5
• C) 1; 22
• D) 3; 7

---

Definitions:

Non-Directional

Pertaining to a hypothesis that does not specify the direction of the expected relationship between variables, only that one exists.

Sample Size

The number of observations or units in a subset of a population used in statistical analysis.

Correlational Research

A type of non-experimental research method used to determine, describe, and predict how variables are naturally related in the real world without any experimental manipulation by the researcher.

Two-Tailed

Pertaining to tests of statistical significance that consider both directions of effects, allowing for the assessment of the possibility of both positive and negative differences.