If a nation's interest rates are relatively high compared to those of other countries, then the exchange value of its currency will tend to
A. appreciate under a system of fixed exchange rates.
B. depreciate under a system of floating exchange rates.
C. depreciate under a system of fixed exchange rates.
D. appreciate under a system of floating exchange rates.
Answer: D
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Economics studies the consequences of
A) choices made by individuals. B) choices made by businesses. C) choices made by governments. D) choices made by society. E) choices made by the entire planet earth.
The U.S. exports computers with a domestic price of $100,000 and the yen/dollar exchange rate is 120 on January 1, 2003. On January 1, 2004 the yen/dollar exchange rate is 125
What is the yen price of the computers on January 1, 2003? What is the yen price of the computers on January 1, 2004?
The total cost curve:
A. is always above the variable cost curve. B. is parallel to the variable cost curve. C. is the sum of the variable cost curve and fixed cost curve. D. All of these are true.
In equilibrium, all traded goods sell at the same price internationally because of
a) government intervention B) arbitrage C) the fact that the underlying value is the same everywhere D) none of the above