In the Long Run, Exchange Rates Are Primarily Determined by

question 125

Multiple Choice

In the long run, exchange rates are primarily determined by

• A) agreements among governments of the world's industrial countries.
• B) relative interest rates in developing countries and industrial countries.
• C) economic fundamentals, such as relative productivity levels.
• D) the rate at which country's currencies exchange for gold.

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Definitions:

Denmark

A country in Northern Europe known for its high standard of living and welfare state.

Singapore

Singapore is a sovereign city-state and island country in Southeast Asia, known for its global financial center, multicultural population, and strong economic performance.

Political

Related to the governance of a country or area, especially the debate or conflict among individuals or parties hoping to achieve power.

Military Considerations

Strategic and logistical evaluations made by armed forces to plan and conduct operations.