Author Question: The domestic currency of a country depreciates in value when: a. there is an increase in the ... (Read 53 times)

NClaborn · **on:** Jun 30, 2018

The domestic currency of a country depreciates in value when:
a. there is an increase in the foreign currency price of the domestic currency.
b. its value falls in relation to another currency.
c. the government of the country revaluates the domestic currency.
d. its value rises in relation to another currency.
e. there is a fall in the domestic demand for foreign currency.

Question 2

An appreciation of the dollar against all currencies in the foreign exchange market would result in all of the following, except:
a. a decrease in the dollar prices paid by U.S. importers.
b. an increase in the cost of vacations in Florida for Japanese tourists.
c. foreign holidays for U.S. residents to be less expensive.
d. an increase in the foreign currency prices paid for U.S. exports.
e. an increase in the demand for U.S. exports.