What Factors Are Not Important in Determining Exchange Rate Fluctuations

question 47

Multiple Choice

What factors are not important in determining exchange rate fluctuations in the Canadian dollar in the long run?

• A)relative price levels across countries
• B)relative rates of productivity growth across countries
• C)foreign preferences for Canadian goods
• D)speculating in currency markets
• E)Canadian preferences for foreign goods

---

Definitions:

Epidermal Cell

A type of cell that makes up the epidermis, the outermost layer of the skin, serving as a protective barrier.

Cellulose

A complex carbohydrate or polysaccharide consisting of glucose units, forming the primary structural component of plant cell walls.

Lignin

A complex organic polymer deposited in the cell walls of many plants, making them rigid and woody, and playing a crucial role in the plant's structural support.

Hemicellulose

is a group of polysaccharides found in plant cell walls that work with cellulose and lignin to provide structural support.