An actual exchange rate between two countries is affected by consumer demands and _______________________ in the two countries.
A)money supply situations
B)political alliances
C)the deficit
D)the Federal Reserve
E)the factor formula

Question

Quizplus · Accepted Answer

The money supply situations in two countries can affect their actual exchange rate because changes in money supply can influence inflation, interest rates, and economic growth, all of which impact exchange rates.

An Actual Exchange Rate Between Two Countries Is Affected by Consumer