Answer Happy

One reason for the failure of purchasing power parity theory and
international fisher effect in predicting short-term movements in
exchange rates is due to the
multiple choice:
A)
strong relationship between interest rate differentials and
subsequent changes in spot exchange rates.
B) strong relationship between inflation rates and interest
rates
C) impact of interest rates and short-term exchange rate
movements
D) impact of investor psychology on short-run exchange rate
movements