The monetary approach makes the general prediction that

Question

Accepted Answer

the exchange rate, which is the relative price of American and European money, is fully determined in the long run by the relative supplies of those monies and the relative demands for them.

Answer

the exchange rate, which is the relative price of American and European money, is fully determined in the short run by the relative supplies of those monies and the relative demands for them.

Answer

the money supply in the U.S. will adjust to European monetary equilibrium.

Answer

the exchange rate, which is the relative price of American and European money, is fully determined in the long run by the relative supplies of those monies.

Answer

the exchange rate, which is the relative price of American and European money, is fully determined in the short run and long run by the relative supplies of those monies and the relative demands for them.

Crowdly

The monetary approach makes the general prediction that

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