A currency has depreciated when:

A. that currency buys less foreign goods than it did previously.
B. that currency buys more foreign goods than it did previously.
C. one unit of that currency buys more units of a foreign currency than it did previously.
D. foreign goods become cheaper to holders of that currency.


A) that currency buys less foreign goods than it did previously

Economics

You might also like to view...

If the production possibilities curve is a straight line,

A. opportunity costs rise as output of either commodity is expanded. B. resources are not equally productive in the production of both goods. C. opportunity costs are negative. D. resources can be moved from the production of one good to production of others with no loss of productivity.

Economics

Government actions to compel more competition in an industry

A) always entail costs, which must be compared to any gains created by the policy. B) always have the effect of lowering prices to consumers. C) cannot benefit anyone if they result in greater inefficiency. D) will result in lower prices but cannot bring about a larger output. E) will not succeed because competition, like morality, cannot be legislated.

Economics

According to your textbook, what is the general rule to follow in order to maximize net revenue?

A) Take any action if, but only if, the expected marginal revenue exceeds the expected marginal cost. B) Take any action you expect will not be copied by your competitors. C) Take as many innovative actions as you can, and leave the copying up to smaller firms in the market because they are least likely to increase their market share. D) Charge the lowest possible price.

Economics

In a market where one unit of labor produces one unit of output, consumers prefer

A) a competitive labor market and a monopoly output market. B) a competitive output market and a monopoly labor market. C) a monopoly output market and a monopoly labor market. D) None of the above—they are indifferent between A and B.

Economics