Which of the following affect the exchange rates in the long run?
A) differential preferences for domestic and foreign goods
B) differences in productivity
C) relative trade barriers
D) all of the above

Question

Quizplus · Accepted Answer

All of the factors listed - differential preferences for domestic and foreign goods, differences in productivity, and relative trade barriers - can affect exchange rates in the long run by influencing the demand and supply for different currencies through trade and investment flows.

Which of the Following Affect the Exchange Rates in the Long