What Factors Are Not Important in Determining Exchange Rate Fluctuations

question 32

Multiple Choice

What factors are not important in 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)speculating in currency markets

---

Definitions:

Foreign Nonprofit Corporation

A nonprofit organization that is formed under the laws of another country but operates within a different country.

Intrastate Business

Business operations confined within the borders of a single state.

State's Courts

Judicial bodies within a specific state that interpret and apply the law of that state.

Corporate Veil

A legal concept that separates the liability and actions of a corporation from its shareholders, protecting personal assets.