When All Variables Start Out at Their Long-Run Equilibrium Levels

question 5

Multiple Choice

When all variables start out at their long-run equilibrium levels, the most important determinants of long-run swings in nominal exchange rates do NOT include

• A) a shift in relative money supply levels.
• B) a shift in relative money supply growth rates.
• C) a change in relative output demand.
• D) a change in relative output supply.
• E) a change in relative inflation rates.

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