Author Question: Which of the following will most likely cause a nation's currency to appreciate on the foreign ... (Read 71 times)

Jipu 123 · **on:** Jun 30, 2018

Which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
a. A decrease in domestic interest rates
b. An increase in foreign interest rates
c. Domestic inflation of 10 percent while the nation's trading partners are experiencing stable prices
d. Stable domestic prices while the nation's trading partners are experiencing 10 percent inflation

Question 2

A shift in the investment demand curve can be caused by a change in the expectations of profits by businessmen.
a. True
b. False
Indicate whether the statement is true or false