Which of the following is most important in explaining exchange rate fluctuations in the short run?
A) relative price levels across countries
B) relative rates of productivity growth across countries
C) preferences for domestic and foreign goods
D) interest rates
D
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A firm in a perfectly competitive market maximizes profits when it finds
A. the quantity at which total revenue minus total cost is the greatest. B. the quantity at which total revenue equals total cost. C. the quantity at which total revenue is maximized. D. the price at which total revenue minus total cost is the greatest.