Which of the Following Is Most Important in Explaining Exchange

question 106

Multiple Choice

Which of the following is most important in explaining exchange rate fluctuations in the short run?

• A)relative price levels across countries
• B)preferences for domestic and foreign goods
• C)interest rates
• D)relative rates of productivity growth across countries
• E)government debt

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Definitions:

Unobtrusive Measure

Research methods that do not involve direct interaction with the participants, minimizing the influence of the measurement process on the results.

Convergent Validity

The extent to which two measurements of constructs, which are expected to have a theoretical correlation, actually do exhibit a relationship.

Reactivity

The alteration of the behavior of study participants due to their awareness of being observed.

Interval Scale

A type of scale used in measurements that expresses the order of variables and also establishes a defined distance between variables, but lacks a true zero point.