Differences in Inflation Rates Between Two Countries Can Explain

Differences in inflation rates between two countries can explain:

A) short-run changes in the exchange rate but not long-run changes.
B) changes in the real exchange rate over the long run, but not changes in the nominal exchange rate.
C) long-run changes in the exchange rate but not short-run changes.
D) changes in the exchange rate in both the short run and the long run.

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