Question

Roll over each factor to read the description. While prediction is imperfect, identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in foreign exchange rates.

Answer 1

The long range predictors in the question are:

• Relative monetary growth
• relative inflation rates
• nominal interest rate differentials

The short range predictors in the question are:

• psychological factors
• investor expectations
• bandwagon effects

What are long range indicators?

These are the indicators that are able to provide a prediction for the way that an economy would be in the future.

What are short range indicators?

These are the instruments that are used periodically to check the economic trends whioch happenly usually more than once in a year.

Read more on economic indicators here: brainly.com/question/903754