The ________ Approach Argues That Equilibrium Exchange Rates Are Achieved

question 38

Multiple Choice

The ________ approach argues that equilibrium exchange rates are achieved when the net inflow of foreign exchange arising from current account activities is equal to the net outflow of foreign exchange arising from financial account activities.

• A) balance of payments
• B) monetary
• C) asset market
• D) law of one price

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Definitions:

Ventilation

Process of moving air into and out of the lungs; breathing.

External Respiration

Exchange of oxygen and carbon dioxide between alveoli of the lungs and blood.

Internal Respiration

Exchange of oxygen and carbon dioxide between blood and tissue fluid.

Cellular Respiration

The process by which cells convert glucose and oxygen into ATP, releasing carbon dioxide and water.