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Basic Question 6 of 8
Which model claims that monetary policy affects the exchange rate primarily through the interest rate sensitivity of capital flows?
B. The Taylor rule.
C. The portfolio balance approach.
A. The Mundell-Fleming Model.
B. The Taylor rule.
C. The portfolio balance approach.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the potential effects of monetary and fiscal policy on exchange rates;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.