If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate increases, then the domestic currency has:

A. appreciated.
B. depreciated.
C. become undervalued.
D. become overvalued.


Answer: B

Economics

You might also like to view...

The word “economy” comes from the Greek word oikonomos, which means Question 39 options: “environment.” “production.” “one who manages a household.” “one who makes decisions.”

a. "environment"
b. "production"
c. "one who manages a household"
d. "one who makes decisions"

Economics

The price (P) of a consol offering an annual coupon payment (C) is best expressed by:

A. C/i B. C/(1+ i) C. C(1 + i) D. F/C

Economics

The part of consumption that does NOT depend upon the level of disposable income is

A. autonomous consumption. B. savings. C. saving. D. average propensity to consume.

Economics

A mail-order clothing company offers a discount if customers purchase two shirts instead of only one. This is necessarily an example of quantity discrimination

Indicate whether the statement is true or false

Economics