In the Long Run, the Nominal Exchange Rate

question 83

Multiple Choice

In the long run, the nominal exchange rate:

• A) is indeterminate.
• B) is equal to the ratio of the money supply in the two economies.
• C) is equal to the ratio of the price levels in the two economies.
• D) equals the real exchange rate.
• E) equals the nominal exchange rate in the short run.

---

Definitions:

Radiopaque

A term describing substances that are impenetrable to X-rays and other forms of radiation, appearing white or light on radiographs.

Barium

A chemical element with symbol Ba and atomic number 56, used in medical imaging to improve the contrast of X-ray photographs.

Fluorescence

The emission of light by a substance that has absorbed light or other electromagnetic radiation, often seen in minerals, plant materials, and synthetic compounds.

Prone

Lying flat, especially face-down, or having a tendency or inclination towards something.