If nominal British interest rates are 3% and nominal U.S. interest rates are 6%, then the British pound (£) is expected to ____ by about ____%, according to the international Fisher effect (IFE).

The following regression model was run by a U.S.-based MNC to determine its degree of economic exposure as it relates to the Australian dollar and Sudanese dinar (SDD):  PCFt = a0 + a1et + mt  where the term on the left-hand side is the percentage change in inflation-adjusted cash flows measured in the firm’s home currency over period t, and et is the percentage change in the exchange rate of the currency over period t. The regression was run over two subperiods for each of the two currencies, with the following results:   Regression Coefficient (a1) Regression Coefficient (a1) Currency Earlier Subperiod Recent Subperiod Australian dollar (A$) -.80 .10 Sudanese dinar (SDD)   .20 .25 Based on these results, which of the following statements is probably true?  (Select all that apply.)

It has been argued that the exchange rate can be used as a policy tool. Assume that the U.S. government would like to reduce unemployment. Which of the following is an appropriate action given this scenario?

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

Truman terminated MacArthur’s command because

If you expect the British pound to depreciate, you could speculate by ____ pound call options or ____ pound put options.

If the interest rate is higher in the U.S. than in the United Kingdom, and if the forward rate of the British pound (in U.S. dollars) is the same as the pound’s spot rate, then:

Cierra, Inc. is attempting to assess its degree of economic exposure in euros. In order to do so, it has applied regression analysis to determine whether the percentage change in its total cash flow is related to the percentage change in the euro. A ____ and statistically significant slope coefficient resulting from this analysis implies that the cash flows are ____ related to the percentage changes in the euro.

If quoted exchange rates are the same across different locations, then ____ is not feasible. (Select all that apply.)

At the same time, the British finally drove back the Afrika Korps at