Demand for U.S. dollars by speculators is likely to increase if ...

[Ebrown]

Demand for U.S. dollars by speculators is likely to increase if the dollar is expected to depreciate in the near future.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Under a system of flexible exchange rates, a decrease in the demand for a country's currency on the foreign exchange market will:
 a. cause the country's currency to depreciate in value.
 b. cause the country's currency to appreciate in value.
 c. make the country's goods more expensive to foreigners.
 d. make foreign goods less expensive to the country's citizens.

[batool]

Answer to Question 1

False

Answer to Question 2

a