CFA Practice Question

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CFA Practice Question

Which approach centers on changes in the prices of goods and services as the determinant of a country's balance of payments and the exchange value of its currency?

A. The elasticities approach
B. The absorption approach
C. The multiplier approach
Correct Answer: A

User Contributed Comments 3

User Comment
moneyguy Key word here is "changes" = elasticity
schweitzdm Changes in prices:
- regard elasticities

Changes in real domestic income:
- regard absorption
farhan92 RIP Tupac.
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