The determinants of exchange rate fluctuations are different in the short run, medium run, and long...
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The determinants of exchange rate fluctuations are different in the short run, medium run, and long run. Which of the following influence medium-run exchange rates? Check all that apply. Cyclical factors Business cycles Fluctuations in economic activity The following graph presents exchange rates as simultaneously determined by long-term structural, interim cyclical, and short-term speculative forces. EXCHANGE VALUE (W) A F D B 0 2005 2006 2007 2008 2009 2010 YEAR Fundamental equilibrium path Complete the following Long-run equilibrium path rate path for each graph element listed. Graph Element Green curve F Grey area (w) Green curve AB Medium-run cyclical path Short-run overshooting path (?) The determinants of exchange rate fluctuations are different in the short run, medium run, and long run. Which of the following influence medium-run exchange rates? Check all that apply. Cyclical factors Business cycles Fluctuations in economic activity The following graph presents exchange rates as simultaneously determined by long-term structural, interim cyclical, and short-term speculative forces. EXCHANGE VALUE (W) A F D B 0 2005 2006 2007 2008 2009 2010 YEAR Fundamental equilibrium path Complete the following Long-run equilibrium path rate path for each graph element listed. Graph Element Green curve F Grey area (w) Green curve AB Medium-run cyclical path Short-run overshooting path (?)
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