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Basic Question 15 of 15
Which approach centers on changes in the prices of goods and services as the determinant of a country's balance of payments and the exchange value of its currency?
B. The absorption approach
C. The multiplier approach
A. The elasticities approach
B. The absorption approach
C. The multiplier approach
User Contributed Comments 3
| User | Comment |
|---|---|
| moneyguy | Key word here is "changes" = elasticity |
| schweitzdm | Changes in prices: - regard elasticities Changes in real domestic income: - regard absorption |
| farhan92 | RIP Tupac. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe exchange rate regimes and explain the effects of exchange rates on countries' international trade and capital flows
CFA® 2024 Level I Curriculum, Volume 1, Module 7.