If There Is a Fixed-Exchange-Rate System, Then in the Long

Multiple Choice

If there is a fixed-exchange-rate system, then in the long run:

A) the nominal exchange rate is fixed, but the real exchange rate is free to vary.
B) the real exchange rate is fixed, but the nominal exchange rate is free to vary.
C) both the nominal and real exchange rates are fixed.
D) the nominal and real exchange rates vary by a fixed amount.