Which of the Following Factors Affects the Exchange Rate in the Short

question 67

Multiple Choice

Which of the following factors affects the exchange rate in the short run but not the long run?

• A) domestic interest rate
• B) relative expected trade barriers
• C) relative import demand
• D) They all affect the short and long run exchange rate.

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Definitions:

Control Group

In experimental research, it refers to the group of participants who do not receive the experimental treatment, serving as a comparison to evaluate the effect of the treatment.

Cause-Effect Relationships

The principle that an action or event will produce a certain response in the form of another event.

Experiment

A scientific procedure undertaken to test a hypothesis, determine causality, or uncover specific effects under controlled conditions.

Experimental Group

In research, the group of participants who are exposed to the independent variable under investigation to study its effect.