Under a Flexible Exchange Rate System, Which One of the Following

question 47

Multiple Choice

Under a flexible exchange rate system, which one of the following would not directly affect the exchange rate?

• A)a change in income
• B)the relative inflation rates in two countries
• C)the salary of the president of the United States
• D)a change in capital flows
• E)a change in the level of exports or imports

---

Definitions:

Health Problems

Issues or conditions that negatively affect an individual's physical or mental wellbeing.

Physical Illness

Any disease or condition that affects the body's ability to function normally, ranging from mild to severe.

Death of Spouse

A significant life event that involves the passing away of one's marital partner, often leading to profound emotional grief and lifestyle changes.

Jail Term

The period of time a person is sentenced to spend in jail as punishment for a crime.