An increase in demand for a nation's currency in the foreign exchange market will:

A. cause the nation's currency to appreciate.
B. make it more expensive for the nation to import goods.
C. cause the nation's balance on its current account to shift toward a surplus.
D. make it less expensive for foreigners to buy the nation's goods.


Answer: A

Economics

You might also like to view...

If the North American newsprint paper market is a monopoly, then: a. abnormally high profits will attract the entry of new firms

b. the entry of new firms will eventually cause price to decline. c. the quantity produced in the market is larger than the socially optimal level of output. d. entry will remain blocked even if the monopolist earns high profits in the short run.

Economics

In recent years, the Fed has generally set the discount rate

a. lower than the federal funds rate to help financially troubled banks get more solvent. b. higher than the interest rate on 30-year fixed-rate mortgage loans. c. higher than the federal funds rate for most banks. d. equal to the rate of inflation.

Economics

If a binding price ceiling is imposed on the baby formula market, then

a. the quantity of baby formula demanded will increase. b. the quantity of baby formula supplied will decrease. c. a shortage of baby formula will develop. d. All of the above are correct.

Economics

If revenues exceed ________, profit is ________.

A. fixed cost; positive B. total cost; negative C. total cost; positive D. variable cost; negative

Economics