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

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Definitions:

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in the market.

Rental Housing Market

The segment of the real estate market that involves the leasing or renting of property for residential purposes.

Rent-Control Scheme

A rent-control scheme is a government policy that sets a maximum price that can be charged for rental housing, aiming to make housing more affordable.

Equilibrium Rental Price

The price at which the quantity of rental properties supplied equals the quantity demanded.