If the exchange rate changes from $2.00 = £1 to $2.01 = £1 then
A) the dollar has depreciated.
B) the dollar has appreciated.
C) the British pound has depreciated.
D) the British pound has stayed constant in value.
Answer: A
You might also like to view...
The relatively low rate of inflation coupled with a low unemployment rate that occurred in the 1990s represented a “normal” economic situation.
Answer the following statement true (T) or false (F)
Many macroeconomic variables a. fluctuate together and by different amounts
b. fluctuate together by the same amounts. c. never fluctuate together. d. fluctuate together about half of the time and by the same amount.
During a time of rising asset values, a bank can increase its returns by engaging in regulatory capital arbitrage
Indicate whether the statement is true or false
Suppose the accompanying figure illustrates the demand curve facing a monopolist.
If the monopolist decreases its price from $12 to $10, its total revenue will ________.
A. increase by $1,000 B. decrease by $1,000 C. decrease by $600 D. increase by $600