Exchange Rate Determination in the Short Run Is Underlied by Which

Multiple Choice

Exchange rate determination in the short run is underlied by which of the following assumptions:

A) Tariffs and quotas affect trade patterns only in the short run
B) Prices of goods and services affect trade patterns only in the short run
C) Expected returns on financial assets affect investment flows in the short run
D) Preferences for goods and services affect trade flows only in the short run