What Factors Are Most Important for Determining Exchange Rate Fluctuations

question 112

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)All of the above are correct.

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Definitions:

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly without modifications for a contract to be formed.

Parol Evidence Rule

A legal principle stating that oral agreements or statements made prior to or at the time of a written contract cannot contradict the terms of the written contract.

Merchant

An individual or company engaged in the business of selling goods or services.

UCC Article 2

Part of the Uniform Commercial Code that governs the sale of goods in the United States.