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Name the four major factors that affect the exchange rate in the long run. Relative to...

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Finance

Name the four major factors that affect the exchange rate in thelong run. Relative to other (foreign) countries, what happens to acountry’s (domestic) exchange rate when it experiences an increasein each of these factors?

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Four Major factors that affect the exchange rate in the long run are 1 Inflation Inflation in the long run occurs due to supply side constraints If long run demand is higher than supply inflation occurs Long run inflation cannot    See Answer
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Name the four major factors that affect the exchange rate in thelong run. Relative to other (foreign) countries, what happens to acountry’s (domestic) exchange rate when it experiences an increasein each of these factors?

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