1.

Which one of the following statements is true regarding exchange rates in the flexible exchange rate system?Select one:AExchange rates are unpredictable because they are simultaneously influenced by long-run, medium run,factors.and short-runB . Interest rate arbitragers broaden the short-term dis-equilibrium.C. Starting at the short-term equilibrium, if the market expects that country A's currency would appreciate in the demand for country's A currency would decrease.D.Exchange rates should always be at the long-run equilibrium which satisfies the purchasing power parity.​

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ANSWER:

a

Explanation:



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