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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 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
explain the potential effects of monetary and fiscal policy on exchange rates;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.