Question: Need help with Q15~Q20 only the answer is fine if the explanation is complicated, but please ensure the accuracy Question 15 1 pts 2 https://canvas.
Need help with Q15~Q20 only the answer is fine if the explanation is complicated, but please ensure the accuracy



Question 15 1 pts 2 https://canvas. pitt. edu/courses/77225/quizz Deviations from interest rate parity occur due to O transaction costs. O political risk. government controls. O All of the above. Question 16 1 pts The is based on the idea that a product that is freely traded in a competitive global market should have the same price everywhere if the prices at different places are expressed in the same currency O law of one price O law of supply and demand O floating exchange rate O role of interest ratesQuestion 17 1 pts If the law of one price holds, then we would expect that if one dollar exchanges for four yen and if a computer costs $1,000 in the United States, then in Japan, the computer should cost: 2000 yen. O 3000 yen. O 250 yen. https://canvas. pitt. edu/courses/77225/quizz Q 4000 yen. Question 18 1 pts Suppose that the U.S. inflation rate is 4%, and the Mexican inflation rate is 6%. What does the purchasing power parity theory of exchange rates predict about the exchange rate between the U.S. and Mexican currency? O The dollar will depreciate. O The peso will be worth 1.5 dollars in the foreign exchange market. O The peso will depreciate. O The dollar will be worth 1.5 pesos in the foreign exchange market.Question 19 1 pts We can expect deviations from PPP because of O trade barriers, such as tariffs and quotas untraded goods and services transportation costs O differentiated goods O all of the above Question 20 1 pts Relative PPP indicates that 2 https://canvas. pitt. edu/courses/77225/quizz O the exchange rate between any two currencies is equal to the ratio of their price indexes. O the same good sells for the same price internationally. O the percentage change in the exchange rate is equal to the inflation differential between the domestic and foreign country. O relative prices determine exchange rates
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