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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