Under floating exchange rates, short-run exchange rates are primarily determined by national differences in real interest rates and shifting expectations of future exchange rates.
举一反三
- According to the interest rate parity theory, when the forward foreign exchange rate is premium, it means that the domestic interest rate( ) A: is equal to the foreign exchange rate B: lower than foreign exchange rates C: higher than foreign exchange rates D: Not sure
- The impact of national interest rate on the exchange rate is ( ). A: up to compare factors such as foreign interest rate and domestic inflation rate. B: rising interest rates, rising currencies C: falling interest rates, falling currencies D: falling interest rates and rising currencies
- The difference between a free floating exchange rate and a managed floating exchange rate is A: under managed float government intervention plays a role in determining the exchange rate. B: free floating exchange rates can only appreciate or depreciate by 5 units per day. C: the equilibrium exchange rate is always higher for managed float rates. D: all of the above
- In the long run, ______. ( ) A: exchange rates are unlikely to obey relative PPP when all disturbances occur in the output markets. B: exchange rates obey absolute PPP when all disturbances occur in the output markets. C: exchange rates obey relative PPP when all disturbances occur in the output markets. D: exchange rates obey absolute PPP when all disturbances are monetary in nature.
- Forward and spot exchange rates