In the ________,changes in exchange rates occur because of changes in tastes or technology and are part of the adjustment to a shock to the world economy.
A) Balance of payments approach
B) Equilibrium approach
C) News approach
D) Exchange rate approach

Question

Quizplus · Accepted Answer

The equilibrium approach suggests that exchange rate changes are part of the natural adjustment process to shifts in tastes or technology, reflecting the new equilibrium in the world economy.

In the ________,Changes in Exchange Rates Occur Because of Changes