In the Long Run, with a Floating Exchange Rate, Changes

question 158

Multiple Choice

In the long run, with a floating exchange rate, changes in

• A) the U.S. money supply will only have an impact on the real exchange rate.
• B) the foreign country's money supply will only have an impact on the real exchange rate.
• C) both the U.S. money supply and the foreign country's money supply will have an impact on the real exchange rate.
• D) None of the answers is correct.

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Definitions:

Societal Cultures

The shared values, norms, behaviors, and artifacts that characterize different groups or societies.

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Corporate Rituals

Established ceremonies or actions performed in a company that symbolize its values and culture.

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