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When Traders Perceive a Permanent Money Supply Adjustment, Long-Term Nominal

Question 20

Multiple Choice

When traders perceive a permanent money supply adjustment, long-term nominal interest rates ___ affected, the expected exchange rate ____ affected, and the spot exchange rate _____ affected.


A) are not; is; is
B) are; is; is not
C) are not; is not; is not
D) are; is not; is

Correct Answer:

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