Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.20 euros per dollar.
The dollar has ________ and a possible reason for the change is ________ in the expected future exchange rate.
A) appreciated; because there has been no change
B) depreciated; a decrease
C) appreciated; a decrease
D) appreciated; an increase
E) depreciated; an increase
Question 2
During the year, suppose a country's total purchases of newly produced capital goods is 2,000 billion, issues 1,600 billion of stock certificates, and has 500 billion in depreciation. Gross investment in this country equals
A) 2,500 billion.
B) 2,000 billion.
C) 2,100 billion.
D) 4,100 billion.
E) 3,600 billion.
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