Answer :
It is TRUE that, The logic of the exchange-rate effect begins with a change in the price level changing the interest rate.
- A currency's exchange rate is the price at which it will be exchanged for another currency.
- The majority of exchange rates are considered to be "floating," meaning that they can change according to market supply and demand.
- There are some exchange rates that are fixed or pegged to the value of a particular nation's currency.
- Exchange rate fluctuations have an impact on businesses by altering the cost of imported supplies and the demand for their goods from foreign consumers.
- An acronym for the national currency a rate of exchange represents is frequently used when quoting it.
- Rate changes can happen hourly, daily, in large incremental shifts, or both.
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