Under a flexible exchange rate system, an increase in the value of a domestic currency in terms of other currencies is referred to as
A. a revaluation.
B. a depreciation.
C. a devaluation.
D. an appreciation.
Answer: D
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Tariff rates remained high in the U.S. throughout the postbellum period for which of the following reasons?
(a) The government needed revenues to finance its expenditures. (b) Special interest groups organized themselves to realize rents. (c) Land sales dwindled as the Western frontier closed. (d) All of the above.
Which of the following is not a potential result of a price floor?
A) excess supply B) price greater than free-market equilibrium price C) Lower quality inputs are used, which increases marginal cost. D) all of the above
Joseph decides to join the Big State University's football team when he learns that his health insurance will pay for any subsequent injury. This illustrates
A) a moral hazard problem. B) monopolistic behavior. C) a symmetric information problem. D) oligopolistic behavior.
When economists talk about a "balance of payments" deficit, they refer to a condition in which total debits exceed total credits in the balance of payments account
a. True b. False Indicate whether the statement is true or false