All of the following are market determinants of exchange rates EXCEPT

A) changes in productivity in one country relative to another.
B) changes in real interest rates in one country relative to another.
C) changes in product preferences between countries.
D) changes in the relative prices of goods and services within a country.


D

Economics

You might also like to view...

Which of the following are devices that the government uses to achieve a more efficient allocation of resources in the presence of external benefits?

A) taxes, private subsidies, and regulation B) public provision, taxes, and private subsidies C) regulations, public provision, and vouchers D) vouchers, public provision, and private subsidies E) public provision, taxes, and vouchers

Economics

The process by which productivity raises the average standard of living is referred to as

A) long-run economic growth. B) labor productivity. C) population growth analysis. D) the economic prosperity hypothesis.

Economics

In the Mundell-Fleming model with perfect capital mobility, the domestic interest rates are determined by

a. monetary policy. b. the IS and LM curves. c. domestic savings and investment. d. budget deficits. e. none of the above.

Economics

Under the adaptive expectations hypothesis, which of the following is the effect of a shift to a more expansionary monetary policy?

a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the unemployment rate will decrease, but in the long run, it will self correct to the natural rate of unemployment. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain, but in the long run, output will increase.

Economics