What Factors Are Most Important for Determining Exchange Rate Fluctuations

question 183

Multiple Choice

What factors are most important for determining exchange rate fluctuations in the long run?

• A)relative price levels across countries
• B)relative rates of productivity growth across countries
• C)preferences for domestic and foreign goods across countries
• D)tariffs and quotas that restrict trade between countries
• E)All of the above are correct.

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