Macroeconomics

Changes in which of the following variables will cause the current nominal exchange rate to change? A B

Question

Changes in which of the following variables will cause the current nominal exchange rate to change?

A. B.

C. D. E.

Future expected domestic nominal interest rates.

Future expected foreign nominal interest rates.

The future expected long-run nominal exchange rate, Eet+n .

All of the above.

None of the above.

Macroeconomics

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