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Which of the following statements is True? Group of answer choices Since supply and demand for a currency are constant (primarily due to government intervention),
Which of the following statements is True? Group of answer choices Since supply and demand for a currency are constant (primarily due to government intervention), currency values seldom fluctuate. Relatively high Japanese inflation may result in an increase in the supply of yen for sale and a reduction in the demand for yen. In general, when speculating on exchange rate movements, the speculator will borrow the currency that is expected to appreciate and invest in the country whose currency is expected to depreciate The main effect of interest rate movements on exchange rates is through their effect on international trade. The exchange rates of smaller countries are very stable because the market for their currency is very liquid
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