Equilibrium, in the short run, is achieved when:
A) differences in rates of return cause investors to purchase and sell currency and thereby change the spot rate of exchange.
B) the government recognizes a problem and takes action to correct it.
C) traders adjust their expectations to match reality.
D) inflation falls to zero.

Question

Quizplus · Accepted Answer

The Answer of Equilibrium, in the short run, is achieved when:
A) differences in rates of return cause investors to purchase and sell currency and thereby change the spot rate of exchange.
B) the government recognizes a problem and takes action to correct it.
C) traders adjust their expectations to match reality.
D) inflation falls to zero.

Equilibrium, in the Short Run, Is Achieved When