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Which of the following statements is MOST accurate? Question 22 options: Because exchange rates are the relative prices of imports and exports, factors that affect
Which of the following statements is MOST accurate? Question 22 options: Because exchange rates are the relative prices of imports and exports, factors that affect a country's trade openness are among the most powerful determinants of its currency's exchange rate against foreign currencies. Because exchange rates are the relative prices of imports and exports, factors that affect a country's trade barriers are among the most powerful determinants of its currency's exchange rate against foreign currencies. All else equal, aggregate demand for money and interest rates are positively related. Because exchange rates are the relative prices of national monies, factors that affect a country's money supply or demand are among the most powerful determinants of its currency's exchange rate against foreign currencies. Because exchange rates are the relative prices of national monies, factors that affect a country's imports and exports are among the most powerful determinants of its currency's exchange rate against foreign currencies
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