Which of the Following Affects the Exchange Rate in the Short

question 8

Multiple Choice

Which of the following affects the exchange rate in the short run?

• A) relative price level
• B) foreign interest rate
• C) relative import demand
• D) all of the above

---

Definitions:

Mineral Oil

A liquid by-product of refining crude oil, used as a base ingredient in some lubricants, cosmetics, and industrial chemicals.

R-134a System

R-134a system refers to a refrigeration and air conditioning system that uses R-134a, a hydrofluorocarbon refrigerant, known for its low environmental impact compared to earlier refrigerants.

Circulation

The movement or flow of fluids (such as blood, air, or water) or gases in a loop or system, often referring to the movement within a closed system.

Heat Energy

The form of energy that is transferred between two substances at different temperatures, manifesting as thermal energy in the process of its transfer.