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When All Variables Start Out at Their Long-Run Equilibrium Levels,the

Question 27

Multiple Choice

When all variables start out at their long-run equilibrium levels,the most important determinant of long-run swings in nominal exchange rates is


A) a shift in relative money supply levels.
B) a shift in relative money supply growth rates.
C) a change in relative output demand.
D) a change in relative output supply.
E) a change in relative inflation rates.

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