Under floating exchange rates, short-run exchange rates are primarily determined by national differences in real interest rates and shifting expectations of future exchange rates.

Name: Under floating exchange rates, short-run exchange rates are primarily determined by national differences in real interest rates and shifting expectations of future exchange rates.
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Question

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This is a true statement about the determination of short-run exchange rates under floating exchange rates.

Under Floating Exchange Rates, Short-Run Exchange Rates Are Primarily Determined