Which of the following statements is the most accurate?

A.The monetary approach to the exchange rate is a long-run theory.

B.The monetary approach to the exchange rate is a short-run theory.

C.The monetary approach to the exchange rate is both a short- and long-run theory.

D.The monetary approach to the exchange rate neither long-run nor short-run theory.

E.None of the above statements is true.

Answer: A

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