If purchasing power parity holds together with interest


1. If purchasing power parity holds together with interest rate parity

a) real interest rates will be equal across the two countries

b) real exchange rates will be equal across the two countries

c) inflation rates will be equal across the two countries

2. When a business or individual files for bankruptcy the creditors must ___________

A. Stop contacting the debtor

B. May continue to try and collect their money but in a non-hostile manner

C. Can call between 8am and 8pm, M-F

D. Any combination of A, B, or C as long as they use an attorney

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Financial Management: If purchasing power parity holds together with interest
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