What factors are most important for determining exchange rate ...

[Mimi]

What factors are most important for determining exchange rate fluctuations in the long run?
 
  A) preferences for domestic and foreign goods across countries
  B) relative rates of productivity growth across countries
  C) relative price levels across countries
  D) All of the above are correct.

Question 2

List some examples of the scarcity that you face.
 
  What will be an ideal response?

[bob]

Answer to Question 1

D

Answer to Question 2

Examples of scarcity common to students include not enough income to afford both tuition and a nice car, not enough learning capacity to study for both an economics exam and a chemistry exam in one night, and not enough time to allow extensive studying and extensive socializing.

[Mimi]

Correct answers!

[bob]

Great! Please up vote