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    International Economics Study Set 9
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    Exam 13: Introduction to Exchange Rates and the Foreign Exchange Market
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    Explain in Your Own Words the Effective Exchange Rate and Why
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Explain in Your Own Words the Effective Exchange Rate and Why

Question 78

Question 78

Essay

Explain in your own words the effective exchange rate and why policy makers pay more attention to it than the bilateral exchange rate.

Correct Answer:

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Answered by ExamLex AI

The effective exchange rate is a measure...

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