Question: 5. A decrease in the expected exchange rate E$/e causes: (Reference: Review Exchange Rate Effect of Changes in the Expected Exchange Rate before responding) a.

5. A decrease in the expected exchange rate E$/e causes: (Reference: Review Exchange Rate Effect of Changes in the Expected Exchange Rate before responding) a. no change in the spot exchange rate. b. an increase in the rate of return on pound in the short run. c. an increase in the rate of return on dollar in the short run. d. a decrease in the rate of return on pound in the long run

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