Which of the Following Is False with Regard to Exchange

question 18

Multiple Choice

Which of the following is false with regard to exchange rate dynamics:

• A)seeks to explain exchange rate fluctuations over time
• B)results because the real sector adjusts instantaneously to disturbances
• C)in the short run,the exchange rate overshoots its long-run equilibrium
• D)results from the stock adjustment in financial assets

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