Asked by David Lindsey on Apr 30, 2024
Verified
Currency appreciation would occur in a nation if
A) the demand for the nation's exports increases.
B) the demand for the nation's imports increases.
C) real interest rates in the nation decrease relative to the rest of the world.
D) the inflation rate is higher within the nation than in the rest of the world.
Nation's Exports
The goods and services produced in one country and sold to buyers in another country.
Imports
Goods or services brought into one country from another for sale or exchange.
- Identify variables that result in the appreciation or depreciation of currency.
Verified Answer
SL
Sarah LinanMay 03, 2024
Final Answer :
A
Explanation :
If the demand for the nation's exports increases, then there will be an increase in the demand for the nation's currency. As a result, the value of the currency will appreciate.
Learning Objectives
- Identify variables that result in the appreciation or depreciation of currency.
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