Which of the following statements about the level of the exchange is correct according to the sectoral model?
A) The export-oriented sector prefers a strong currency.
B) The import-competing sector prefers a strong currency.
C) The traded-goods sector prefers a strong currency.
D) The nontraded goods sector prefers a weak currency.
E) Financial services sector tend to be agnostic with respect to the level of exchange rates.
Correct Answer:
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