Which of the Following Is NOT an Assumption of the Behavior

question 140

Multiple Choice

Which of the following is NOT an assumption of the behavior of exchange rates in the short run?

• A) The adjustment period involves weeks rather than years.
• B) Market forces are irrelevant and "do not matter."
• C) Prices of goods adjust slowly and are therefore "sticky."
• D) Economic actors behave in their own self-interest.

---

Definitions:

Live Events

Activities or performances that are viewed or participated in by an audience in real-time, rather than recorded or streamed.

Local Markets

refers to smaller, geographically focused markets often serving the immediate needs of a community or region.

Long Lead Time

The extended period that elapses from the initiation of a process, like ordering a product, until its completion or delivery.

Perishable Message

A message or communication that loses its relevance or value over time, particularly in fast-paced environments.