Long-Run Exchange Rate Movements Are Governed by All of the Following

question 141

Multiple Choice

Long-run exchange rate movements are governed by all of the following EXCEPT

• A) national productivity levels.
• B) consumer tastes and preferences.
• C) rates of inflation.
• D) interest rate levels.

---

Definitions:

Simplification (Simp)

A logical operation that breaks down complex arguments or propositions into simpler components.

Modus Ponens (MP)

A form of valid argument in deductive logic that, if a given premise is true ('if P then Q'), and the antecedent (P) is also true, then the consequent (Q) must be true.

Universal Generalization (UG)

A principle in logic where a statement applies to all members of a category or class.

Existential Generalization (EG)

A logical inference rule that allows for the conclusion that at least one member of a domain possesses a certain property, based on evidence of a specific instance.