【多选题】In 1995, the Thai baht is pegged to a basket of currencies. Assume that the baht exchange rate is set at 25 baht per U.S. dollar. Thailand is experiencing rapid economic growth, with extensive ongoing...
A.
In 1995, Thai baht would soon depreciate as suggested by purchasing power parity (PPP)
B.
Thai baht would appreciates strongly against the U.S. dollar two years later.
C.
As suggested by the asset market approach, Thai's growth potential attracts large inflows of capital through foreign investment in the country.
D.
In 1995, productivity gains in Thailand allow it to sustain a real appreciation of the baht.
E.
The spot exchange rate would adjust to inflation differential between the two countries two years later.