Which of the following affects the exchange rate in the long run?

Select one:

a.relative price level

b.domestic interest rate

c.expected import demand

d.all of the above

Which of the following factors affects the exchange rate in the short run but not the long run?

Select one:

a.domestic interest rate

b.relative expected trade barriers

c.relative import demand

d.They all affect the short and long run exchange rate.

The advantage of having a weak currency is it

Select one:

a.stimulates the demand for exports.

b.make imports more expensive.

c.makes currency trading more profitable.

d.none of the above.

Under the classical gold standard:

Select one:

a.a fall in the supply of gold induced inflation.

b.countries easily adjusted to domestic shocks.

c.the U.S. was able to control domestic monetary policy easily.

d.exchange rates were relatively stable.

Which of the following regimes has/had the most stable exchange rates?

Select one:

a.gold standard

b.Bretton-Woods

c.free float

d.dirty float