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  3. Study Set
    Introduction to International Economics
  4. Exam
    Exam 13: Automatic Adjustments With Flexible and Fixed Exchange Rates
  5. Question
    The Foreign Exchange Market Is Stable If
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The Foreign Exchange Market Is Stable If

Question 27

Question 27

Multiple Choice

The foreign exchange market is stable if:


A) ηM + ηX < 1
B) ηM + ηX = 1
C) ηM + ηX > 1
D) ηM + ηX > 2

Correct Answer:

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