An increase in the nominal exchange rate, e, defined as the number of units of the foreign currency that one unit of the domestic currency will buy, indicates that the domestic currency has ________ relative to the foreign currency.
A. become undervalued
B. depreciated
C. appreciated
D. become overvalued
Answer: C
You might also like to view...
When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by
A) creating new jobs to hire workers who lost their jobs because of NAFTA. B) setting aside funds to support and retrain workers who lost their jobs because of NAFTA. C) reducing tariffs. D) imposing quotas.
Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food (F, y-axis) and $100 is the price of shelter (S, x-axis). How much food can Joe buy if he buys one unit of shelter?
A) 2 units B) 200 units C) 250 units D) 400 units
With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE?
A. If a good's price goes down, then demand for the good will decrease. B. If a good's price goes down, then quantity demanded will increase. C. If price rises and quantity demanded decreases, then the demand curve will shift to the left. D. If demand increases, then the demand curve will shift to the left.
As part of recent cutbacks, Paul just accepted a 10% cut in pay. Now he brews coffee at home instead of stopping at Starbucks every day. Based on this behavior, we can say home-brewed coffee:
A. and Starbucks coffee are -normal goods for Paul. B. will become a normal good for Paul over time. C. is an inferior good, while Starbucks coffee is a normal good for Paul. D. is a normal good, and Starbucks coffee is an inferior good for Paul.