Which of the Following Determines the Exchange Rate Between Two

question 153

Multiple Choice

Which of the following determines the exchange rate between two currencies in the long run?

• A) Relative interest rates
• B) Relative output levels
• C) Expectations of future exchange rates
• D) Relative price levels
• E) Expectations of future interest rates.

---

Definitions:

Middle Portion

The central part of something, often referring to the main body of a text or document.

Major Attention

Major Attention refers to the primary focus or concern given to a task, issue, or aspect of a situation, often requiring significant thought, resources, or effort.

Conversational Language

A casual and informal style of language used in communication, simulating a natural dialogue between people.

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value, representing the reputation, brand, or customer relations.