The Market Fundamentals That Determine the Exchange Rate in the Long

question 16

Multiple Choice

The market fundamentals that determine the exchange rate in the long run are

• A)the real exchange rate and the quantities of money in each economy.
• B)expectations.
• C)the world demand for exports and the world demand for imports.
• D)purchase power parity and interest rate parity.
• E)the interest rate differential and the world demand for exports.

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