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Among the reasons that purchasing power parity (PPP) does not consistently occur are:

If the international Fisher effect (IFE) did not hold based on historical data, then this suggests that:

When Swift writes, “I grant this food will be somewhat dear, and therefore very proper for landlords, who, as they have already devoured most of the parents, seem to have the best title to the children” (456), the word “dear” means which of the following?

If the Fed ____ the interest rates when inflationary expectations remain unchanged, the most likely result is that the value of dollar will ____ and the economy may ____.

Which of the following is the most likely reason for revaluation of a currency?

Assume that the New Zealand inflation rate is higher than the U.S. inflation rate. This will cause U.S. consumers to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from the U.S. According to purchasing power parity (PPP), this will result in a(n) ____ of the New Zealand dollar (NZ$).

The 180-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.10. What is the annualized forward premium or discount of the euro?

The ____ the existing strike price relative to the spot price, the ____ valuable the call options will be. 

Which of the following theories suggests that the percentage change in spot exchange rate of a currency should be equal to the inflation differential between two countries?

What is the proposal made in “A Modest Proposal”?