Economy, asked by shabanatamuly1234, 3 months ago

what determines the value of the exchange rate and it's change under a flexible exchange rate system according to the monetary approach?

Answers

Answered by bprasad52020

Explanation:

A change in the relative money supply changes the exchange rate because it affects the relative price level. ... So according to the monetary approach to flexible exchange rates, the movement in the spot rate is proportional to the movement in the relative money supply

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