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    International Economics Study Set 1
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    Exam 12: Exchange Rate Determination
  5. Question
    The Relationship Between the Exchange Rate and the Prices of Tradable
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The Relationship Between the Exchange Rate and the Prices of Tradable

Question 26

Question 26

Multiple Choice

The relationship between the exchange rate and the prices of tradable goods is known as the:


A) Purchasing-power-parity theory
B) Asset-markets theory
C) Monetary theory
D) Balance-of-payments theory

Correct Answer:

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