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

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Definitions:

Statistical Power

The probability that a statistical test will correctly reject a false null hypothesis, or the test's sensitivity to detect an actual effect when there is one.

Cohen's D

Estimate of the magnitude of the difference between the means of two groups measured in standard deviation units.

Cohen's D

An indicator of the magnitude of difference, displaying the standardized deviation between two averages.

Cohen's D

A measure of the size of an effect for a hypothesis test; it is the difference between two means divided by the standard deviation of the data.