Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound.
B. The pound has depreciated relative to the dollar.
C. The dollar has depreciated relative to the pound.
D. Both currencies have appreciated.
Answer: C
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According to the Keynesian view of the demand for money, an increase in uncertainty will cause
A) a decrease in interest rates. B) an increase in interest rates. C) an increase in aggregate income. D) an increase in consumption.
A system of economic organization in which the ownership and control of productive capital assets rests with the state and resources are allocated through central planning and political decision making is called: a. a market economy
b. a command economy. c. a corporate economy. d. capitalism.
Suppose good X is a normal good. Then a decrease in income would lead to
A. a movement along the demand curve. B. no shift of the demand curve. C. an outward shift of the demand curve. D. an inward shift of the demand curve.
As the price of a product rises, the quantity supplied decreases.
Answer the following statement true (T) or false (F)