Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase.
B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease.
C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
D
Economics
You might also like to view...
Economic theory assumes people will not do what is in the interest of all unless it is in the interest of
A) each. B) humanity. C) the government. D) the public. E) their own pocketbooks.
Economics
Each country in NAFTA sets its own tariffs to the rest of the world.
a. true b. false
Economics