The behavior of prices and exchange rates at the time of the crisis will:
A) increase in a predictable, smooth manner.
B) exhibit erratic jumps upward.
C) show an underlying stability.
D) decrease at first before finding a new equilibrium.

Question

Quizplus · Accepted Answer

During a crisis, prices and exchange rates often exhibit erratic jumps due to market volatility, uncertainty, and rapid changes in investor sentiment.

The Behavior of Prices and Exchange Rates at the Time