In the Long Run, the Chief Determinant of Exchange Rate

question 101

Multiple Choice

In the long run, the chief determinant of exchange rate changes is a change in

• A)interest rates.
• B)real GDP.
• C)the price of gold.
• D)price levels.

---

Definitions:

Poisson Random Variable

A statistical measure that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events happen with a known constant mean rate and independently of the time since the last event.

Specified Interval

A defined range of values within which a particular parameter or statistic is expected to lie.

Success Probability

The likelihood or chance of an event happening, particularly used in the context of achieving a specific outcome.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure, such as speed (distance per unit of time) or interest rate (interest per unit of time or per amount of principle).