Author Question: An increase in a country's money supply causes A) its currency to appreciate in the foreign ... (Read 187 times)

Tazate

  • Hero Member
  • *****
  • Posts: 532
An increase in a country's money supply causes
 
  A) its currency to appreciate in the foreign exchange market while a reduction in the money supply causes its currency to depreciate.
  B) its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to appreciate.
  C) no effect on the values of it currency in international markets.
  D) its currency to depreciate in the foreign exchange market while a reduction in the money supply causes its currency to further depreciate.
  E) its currency to depreciate in the domestic market and appreciate in the foreign market.

Question 2

Free trade is better than protection for a small country.
 
  Indicate whether the statement is true or false



juliaf

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

B

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

For a complete list of videos, visit our video library