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Which of the Following Statements About the Exchange Rate Is

Question 39

Multiple Choice

Which of the following statements about the exchange rate is the most accurate?


A) It states the price of one currency in terms of another currency.
B) It is closely related to the concept of absolute advantage.
C) It is closely related to the concept of comparative advantage.
D) It is the rate at which one country's money is flowing to a second country.

Correct Answer:

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