Exchange Rate Fundamentals, Such as the Income Level, Interest Rates

question 94

Multiple Choice

Exchange rate fundamentals, such as the income level, interest rates, and the price levels,:

• A)do not affect exchange rates in the short run or the long run.
• B)affect exchange rates but are not as important as expectations in the long run.
• C)affect exchange rates and are more important than expectations in the long run.
• D)affect exchange rates, but only in the short run.

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