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Which of the Following Statements Is the MOST Accurate

Question 35

Multiple Choice

Which of the following statements is the MOST accurate?
In general


A) the monetary approach to the exchange rate is a long run theory.
B) the monetary approach to the exchange rate is a short run theory.
C) the monetary approach to the exchange rate is both a short and long run theory.
D) the monetary approach to the exchange rate neither long run nor short run theory.
E) the monetary approach to the exchange rate is considered less practical than the law of one price.

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