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Statistical Studies of the Relationship Between Interest Rates and Later

Question 84

Multiple Choice

Statistical studies of the relationship between interest rates and later depreciation rates show that

A) the interest difference has been a very bad predictor in the large swings of exchange rates.
B) the interest difference has been an accurate predictor in the large swings of exchange rates.
C) the interest difference has correctly predicted the direction in which exchange rates would change.
D) the interest difference has not yet been studied as a predictor in the large swings of exchange rates.
E) the interest difference is unrelated to the large swings of exchange rates.

Correct Answer: