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Using the Notation in the Text, the Long-Run Level of the Exchange

Question 21

Multiple Choice

Using the notation in the text, the long-run level of the exchange rate is:


A) E=Pw/PE = P ^ { w } / P
B) Eˉ=Pw/P\bar { E } = P ^ { w } / P
C) Eˉ=Pˉ/Pˉw\bar { E } = \bar { P } / \bar { P } ^ { w }
D) Eˉ=Pˉw/Pˉ\bar { E } = \bar { P } ^ { w } /\bar { P }
E) None of these answers are correct.

Correct Answer:

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