Trade and interest rates both influence

Question

Quizplus · Accepted Answer

Both trade and interest rates can have an impact on exchange rates, as changes in either can affect the supply and demand for currencies in international markets. Trade deficits and subsidies may also be influenced by these factors, but not as directly as exchange rates. Comparative advantage is primarily determined by factors such as technology, natural resources, and labor skills, rather than trade or interest rates.

Trade and Interest Rates Both Influence