题目内容

The _____ effect suggests that speculations can sometimes be destabilizing as the actions of the international investors move the exchange rate away from the long-run equilibrium value consistent with fundamental economic influences.

A. bandwagon
B. overshooting
C. exchange rate
D. arbitrage

查看答案

搜索结果不匹配？点我反馈

更多问题

The law of one price works well for _____ traded commodities.

A. all
B. rarely
C. heavily
D. domestically

查看答案

_____ purchasing power parity states that the difference between changes over time in product-price levels in two countries will be offset by the change in the exchange rate over this time.

A. Full
B. Partial
C. Relative
D. Absolute

查看答案

Suppose the average price of a Big Mac in the United States is $3.50 while in Japan the average price is 400 yen. If the market exchange rate is that 1 dollar is exchanged for 100 yen, the purchasing power parity model of exchange rate determination suggests that:

A. the yen is overvalued.
B. the yen value is about correct.
C. the price of a Big Mac in Japan will rise.
D. the dollar will depreciate against the yen.

查看答案

Suppose that U.S. prices rise 4 percent over the next year while prices in Mexico rise 6 percent. According to the purchasing power parity theory of exchange rates, which of the following should happen?

A. The dollar will depreciate
B. The peso will be worth 1.5 dollars in the foreign exchange market
C. The peso will depreciate
D. The dollar will be worth 1.5 pesos in the foreign exchange market

查看答案

The _____ effect suggests that speculations can sometimes be destabilizing as the actions of the international investors move the exchange rate away from the long-run equilibrium value consistent with fundamental economic influences.

A. bandwagon B. overshooting C. exchange rate D. arbitrage

The law of one price works well for _____ traded commodities.

_____ purchasing power parity states that the difference between changes over time in product-price levels in two countries will be offset by the change in the exchange rate over this time.

Suppose the average price of a Big Mac in the United States is $3.50 while in Japan the average price is 400 yen. If the market exchange rate is that 1 dollar is exchanged for 100 yen, the purchasing power parity model of exchange rate determination suggests that:

Suppose that U.S. prices rise 4 percent over the next year while prices in Mexico rise 6 percent. According to the purchasing power parity theory of exchange rates, which of the following should happen?

A. bandwagon
B. overshooting
C. exchange rate
D. arbitrage