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:

Hallucinogens

Drugs that cause profound distortions in a person’s perceptions of reality, often inducing hallucinations or altered states of consciousness.

Stimulants

Substances that increase alertness, attention, and energy by accelerating the activity of the central nervous system.

Narcotics

Substances that induce sleep, relieve pain, and can cause changes in consciousness, potentially leading to addiction.

Meditation

A practice of focused attention, mindfulness, or contemplation to achieve a mentally clear and emotionally calm state.