Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. assume a forecasting model uses inflation differen

Assume a forecasting model uses inflation differentials and interest rate differentials to forecast the exchange...

90.2K

Verified Solution

Question

Finance

image
Assume a forecasting model uses inflation differentials and interest rate differentials to forecast the exchange rate. Assume the regression coefficient of the iterest rate differential variable is 0 33 and the coefficient of the inflation differential variable is 16 Which of the following is true? a. The interest rate vanable is inversely related to the exchange rate, and the inflation variable is directly (positively related to the interest rate variable. b. The interest rate variable is inversely related to the exchange rate, and the inflation variable is directly related to the exchange rate. O The interest rate variable is directly related to the exchange rate, and the inflation variable is directly related to the exchange rate Od. The interest rate vanable is directly related to the exchange rate, and the inflation variable is directly related to the interest rate variable

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students