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Basic Question 3 of 8
Which is NOT an assumption of the monetary approach?
B. There is sufficient slack in the economy to allow changes in output.
C. The rate of inflation changes because of money supply changes.
A. The PPP holds.
B. There is sufficient slack in the economy to allow changes in output.
C. The rate of inflation changes because of money supply changes.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain the potential effects of monetary and fiscal policy on exchange rates;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.