The chief cause of short-run changes in exchange rates is

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Short-run changes in exchange rates are primarily caused by "hot money" flows seeking higher returns on investments in foreign countries. This is often driven by fluctuations in interest rates. Other factors, such as political events or central bank interventions, can also have an impact but are typically seen as secondary factors. Changes in consumer tastes would likely have a more indirect and long-term impact on exchange rates.

The Chief Cause of Short-Run Changes in Exchange Rates Is