Which of the following is a primary cause of exchange rate movements in the short run?
A) Changes in relative interest rates.
B) Changes in expectations of future exchange rates.
C) Changes in relative prices.
D) Changes in economic conditions such as relative GDPs.
E) None of the above.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is a primary cause of exchange rate movements in the short run?
A) Changes in relative interest rates.
B) Changes in expectations of future exchange rates.
C) Changes in relative prices.
D) Changes in economic conditions such as relative GDPs.
E) None of the above.

Which of the Following Is a Primary Cause of Exchange