Suppose you observe that with a given supply curve, the Peruvian demand for Argentinean pesos steadily decreases. This will most likely mean:
a. the supply of Peruvian nuevos soles has increased on the foreign exchange market.
b. the Argentinean peso will appreciate in value relative to the Peruvian nuevo sol.
c. the Argentinean peso will depreciate in value relative to the Peruvian nuevo sol.
d. the Peruvian demand for Argentinean goods has increased.
e. the supply of Argentinean pesos has increased on the foreign exchange market.
c
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
If the Fed buys bonds from a private bank, ________
A) the Fed's total liabilities will remain unaffected B) the Fed's total assets will remain unaffected C) the private bank's composition of assets will change D) the private bank's total assets will increase
How does a decrease in government spending affect the aggregate expenditure line?
A) It increases the slope of the aggregate expenditure line. B) It shifts the aggregate expenditure line downward. C) It decreases the slope of the aggregate expenditure line. D) It shifts the aggregate expenditure line upward.
In 1860 government revenues exceeded the earnings of cotton exports by fourfold
Indicate whether the statement is true or false