All of the following are considered among the four most important determinants in explaining exchange rate fluctuations in the long run except

Question

Quizplus · Accepted Answer

Interest rates are more commonly associated with short-term exchange rate fluctuations rather than long-term determinants. Long-term exchange rate movements are more influenced by factors such as productivity, trade policies (tariffs and quotas), and preferences for goods, which affect the trade balance and investment flows over time.

All of the Following Are Considered Among the Four Most