Long-run determinants of the dollar's exchange value include all of the following except:
A) Preferences of Americans for foreign produced goods
B) U.S.tariffs placed on imports of foreign produced goods
C) Productivity of the American worker
D) Interest rates in U.S.financial markets

Question

Quizplus · Accepted Answer

Interest rates in U.S. financial markets are typically considered a short-run determinant of exchange rates, as they influence capital flows and investor behavior in the short term. Long-run determinants are more structural, such as productivity and trade preferences.

Long-Run Determinants of the Dollar's Exchange Value Include All of the Following