EXCHANGE VALUE Which of the following influence long-run exchange rates? Check all that apply. Transfers of assets that respond to inflation rates and investment profitability Flows of goods, services, and investment capital Fluctuations in economic activity The following graph presents exchange rates as simultaneously determined by long-term structural, interim cyclical, and short-term speculative forces. B D 0 2005 2006 2007 2008 2009 2010 YEAR Complete the following table by indicating the exchange rate path for each graph element listed. Graph Element Blue line CD Green curve AB Green curve F Exchange Rate Path

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EXCHANGE VALUE
Which of the following influence long-run exchange rates? Check all that apply.
Transfers of assets that respond to inflation rates and investment profitability
Flows of goods, services, and investment capital
Fluctuations in economic activity
The following graph presents exchange rates as simultaneously determined by long-term structural, interim cyclical, and short-term speculative forces.
B
D
0
2005
2006
2007
2008
2009
2010
YEAR
Complete the following table by indicating the exchange rate path for each graph element listed.
Graph Element
Blue line CD
Green curve AB
Green curve F
Exchange Rate Path
Transcribed Image Text:EXCHANGE VALUE Which of the following influence long-run exchange rates? Check all that apply. Transfers of assets that respond to inflation rates and investment profitability Flows of goods, services, and investment capital Fluctuations in economic activity The following graph presents exchange rates as simultaneously determined by long-term structural, interim cyclical, and short-term speculative forces. B D 0 2005 2006 2007 2008 2009 2010 YEAR Complete the following table by indicating the exchange rate path for each graph element listed. Graph Element Blue line CD Green curve AB Green curve F Exchange Rate Path
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