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the logic of the exchange-rate effect begins with a change in the price level changing the interest rate. a. true b. false

Sagot :

It is TRUE that, The logic of the exchange-rate effect begins with a change in the price level changing the interest rate.

  • A currency's exchange rate is the price at which it will be exchanged for another currency.
  • The majority of exchange rates are considered to be "floating," meaning that they can change according to market supply and demand.
  • There are some exchange rates that are fixed or pegged to the value of a particular nation's currency.
  • Exchange rate fluctuations have an impact on businesses by altering the cost of imported supplies and the demand for their goods from foreign consumers.
  • An acronym for the national currency a rate of exchange represents is frequently used when quoting it.
  • Rate changes can happen hourly, daily, in large incremental shifts, or both.

Learn more about Exchange rate, here

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