To Arrive at a Complete Theory of Exchange Rate Determination

Multiple Choice

To arrive at a complete theory of exchange rate determination, we use:

A) the short-run monetary approach, the long-run monetary approach, and a good dose of common sense.
B) the short-run asset approach, the long-run monetary approach, and real interest parity.
C) real-world phenomena such as sticky prices, government inefficiency, and imperfect markets.
D) information on financial markets, political realities, and the large government debt.