Which of the following is not true regarding "exchange rate indexes?"
A) They will all show the same general trends (i.e., appreciation or depreciation) .
B) Neither economic theory nor practice gives a clear indication of which exchange rate is best.
C) For short-term movements, there can be large differences across exchange rate indexes.
D) Exchange rate indexes are used to measure the average value of a currency relative to several other currencies.
Correct Answer:
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