Which of the following approaches to exchange rate determination stresses the role of the flow of goods and services in the determination of exchange rates?

Question

Quizplus · Accepted Answer

The trade approach to exchange rates emphasizes the role of the flow of goods and services in the determination of exchange rates. The portfolio and asset models of exchange rates emphasize the role of financial factors, such as interest rates and inflation.

Which of the Following Approaches to Exchange Rate Determination Stresses