Which of the Following Is Likely to Be True of the Nominal

question 102

Multiple Choice

Which of the following is likely to be true of the nominal and the real exchange rates in the short run and in the long run if prices in two countries do not respond to exchange rate changes?

• A) The real and the nominal exchange rates between the currencies move proportionally in both the short run and the long run.
• B) The real and the nominal exchange rates between the currencies move proportionally in the short run but not in the long run.
• C) The real and the nominal exchange rates between the currencies move proportionally in the long run but not in the short run.
• D) The real and the nominal exchange rates between the currencies remain constant over time.

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Definitions:

Intrusive Thoughts

Unwanted and often distressing thoughts or images that spontaneously appear in a person's mind.

Flashbacks

The sudden and intense re-experiences of past memories or events, often occurring in individuals with PTSD.

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A mental health condition characterized by persistent feelings of sadness, hopelessness, and loss of interest in activities, along with physical symptoms.

Anxiety Disorders

Mental health disorders characterized by significant feelings of anxiety and fear, impacting daily living and overall well-being.