The domestic currency of a country depreciates in value when:
a. there is an increase in the foreign currency price of the domestic currency.
b. its value falls in relation to another currency
c. the government of the country revaluates the domestic currency.
d. its value rises in relation to another currency.
e. there is a fall in the domestic demand for foreign currency.
b
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When a U.S. company purchases $1 million worth of French cheese, the value of that transaction is recorded in the
A) current account. B) capital and financial account. C) transfer account. D) investment account. E) goods account.
Countries that trade a small amount with a single foreign country tend to float their exchange rate to the foreign country's currency
Indicate whether the statement is true or false
What is the difference between the structural stagnation hypothesis and the secular stagnation theory?
A. Structural stagnation sees foreign countries moving down the value-added chain as the cause of a stagnation, while secular stagnation sees foreign countries moving up the value-added chain as the cause of a stagnation. B. Structural stagnation sees too little investment as the cause of a stagnation, while secular stagnation sees globalization as the cause. C. Structural stagnation sees globalization as the cause of a stagnation, while secular stagnation sees too little investment as the cause. D. There is no difference, they both attribute stagnation to too little investment.
From November 1993 to December 1994, the Democratic Republic of the Congo experienced an inflation rate of 69,502 percent. This economic condition would best be described as:
A. cost-push inflation. B. hyperinflation. C. anticipated inflation. D. a cost-of-living adjustment.