When the value of one currency increases relative to the value of another currency, it has experienced:
A. exchange rate depreciation.
B. exchange rate appreciation.
C. interest rate depreciation.
D. net capital inflow.
B. exchange rate appreciation.
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A tax on wages will
a. reduce labor supply since leisure becomes cheaper. b. raise labor supply since income is reduced. c. have an unpredictable impact on labor supply since there are both substitution and income effects. d. have a predictable impact since economists know substitution effects will dominate.
Which of the following can cause supply-side inflation?
A) an increase in human capital B) increases in the money supply C) tax cuts D) none of the above
Which of the following agencies has established standardized accounting principles for reporting corporate earnings?
A) The Securities and Exchange Commission B) The Federal Trade Commission C) The National Accounting Board D) The Fair Reporting Commission
If monetary policy is used to set the market equilibrium value of the exchange rate equal to the official value, it is no longer available to:
A. stabilize the domestic economy. B. decrease the market equilibrium value of an overvalued currency. C. increase the market equilibrium value of an overloaded currency. D. stabilize the market equilibrium value of the exchange rate.