Multiple Choice
Which of the following statements is true?
A) Defending an undervalued currency is easier in the short run than in the long run.
B) Defending an overvalued currency is easier than defending an undervalued currency.
C) The nominal exchange rate is the ratio of interest rates existing in two countries.
D) The real exchange rate is calculated by dividing the nominal exchange rate by the inflation rate.
Correct Answer:
Verified
Correct Answer:
Verified
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