In Determining the Exchange Rate Between U

question 5

Multiple Choice

In determining the exchange rate between U.S.dollars and Swiss francs, all of the following are assumed constant along the supply curve for francs except one.Which is not assumed constant?

• A)U.S.interest rates
• B)Swiss income
• C)expected rates of inflation in the United States
• D)expected rates of inflation in Switzerland
• E)the price of the Swiss franc

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