Cause rapid fluctuations in short-run exchange rates

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1. T/F Supply-side policy is based on the assumption that people's economic behavior is not affected by taxes.

2. T/F Interest rate differentials can cause rapid fluctuations in short-run exchange rates.

3. T/F In general, speculators tend to make a floating exchange rate system more stable.

4. T/F An increase in the U.S. price level will increase U.S. net exports.

Reference no: EM13980961

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