If the U.S. dollar and British pound have a flexible exchange rate, and the U.S. dollar changes so that one needs more dollars to buy one pound, the currency has
A) depreciated.
B) appreciated.
C) devalued.
D) revalued.
A
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If a country imposes a tariff on an imported good, the tariff ________ the price in the importing country and ________ the quantity of imports
A) raises; decreases B) raises; increases C) raises; does not change D) lowers; does not change
If the size of a tax triples, the deadweight loss increases by a factor of six
a. True b. False Indicate whether the statement is true or false
A tax on a good
a. raises the price that buyers effectively pay and raises the price that sellers effectively receive. b. raises the price that buyers effectively pay and lowers the price that sellers effectively receive. c. lowers the price that buyers effectively pay and raises the price that sellers effectively receive. d. lowers the price that buyers effectively pay and lowers the price that sellers effectively receive.
The decision by a nation to join a currency union is based on:
A) the size of the nation's GDP. B) the diversification of its industry and population. C) the cost of designing, printing, and managing a national currency. D) the costs of abandoning a national currency versus the benefits of a common currency.