When All Variables Start Out at Their Long-Run Equilibrium Levels,the

question 27

Multiple Choice

When all variables start out at their long-run equilibrium levels,the most important determinant of long-run swings in nominal exchange rates is

• A)a shift in relative money supply levels.
• B)a shift in relative money supply growth rates.
• C)a change in relative output demand.
• D)a change in relative output supply.
• E)a change in relative inflation rates.