Hi,

Could you please help me answer the questions below? I need the correct answer, and if possible, a brief explanation. Thanks very much :)

1. "Overshooting" exchange rate changes in response to an action of the Bank of England or Federal Reserve, for example, would an example of a) market efficiency b) market inefficiency c) the Fisher Effect. d) None of the above. 2. A country with a small economy with its GDP heavily reliant on trade with the United States could use alan exchange rate regime to minimize the risk to their economy from unfavorable changes in the exchange rate. a) managed float b) pegged exchange rate with the United States c) independent floating 3. states that differential rates of inflation between two counties tend to be offset over time by an equal but opposite change in the spot exchange rate. a) The international Fisher Effect. b) The Fisher Effect. C) Relative purchasing power parity. Absolute purchasing power parity