Question 13 (4 points) in the short run, most of the exchange rate fluctuations are explained by changes in price levels changes in productivities fluctuations in expected returns of financial assets Onone of the answers are correct Question 14 (4 points) The theory of purchasing power parity assumes that most changes in nominal exchange rates are the result of changes in real exchange rates. assumes that inflation rates are roughly the same in all countries. was valid only under the gold standard. extends the law of one price to a group of goods