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Basic Question 0 of 8
Which model claims that monetary policy affects the exchange rate primarily through the interest rate sensitivity of capital flows?
B. The Taylor rule.
C. The portfolio balance approach.
A. The Mundell-Fleming Model.
B. The Taylor rule.
C. The portfolio balance approach.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain the potential effects of monetary and fiscal policy on exchange rates;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.