题目内容

Exchange rate overshooting suggests that an unexpected increase in the domestic money supply by 10 percent will cause the short-run exchange rate value of the domestic currency to:

A. depreciate by more than 10 percent.
B. depreciate by less than 10 percent.
C. appreciate by more than 10 percent.
D. appreciate by less than 10 percent.

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The concept of purchasing power parity illustrates the relationship between the national price levels and exchange rates in the long-run.

A. 对
B. 错

If the domestic interest rate increases, while the foreign interest rate and the expected spot exchange rate remain constant, the return comparison shifts in favor of investments in bonds denominated in the foreign currency.

A. 对
B. 错

Expectations are destabilizing if they are based on the belief that exchange rates eventually return to the values consistent with basic economic conditions.

A. 对
B. 错

Purchasing power parity theory is a better guide to short-run movements in exchange rates than to long-run movements in exchange rates.

A. 对
B. 错

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