Which of the following would cause a currency to depreciate in a flexible exchange rate market?
a) Rising domestic interest rates.
b) Reduced demand for imported goods.
c) Increased investment abroad.
d) A surge in foreign demand for a country's goods.
Ans: c) Increased investment abroad.
Economics
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A) vertical; investment B) vertical; money C) horizontal; investment D) horizontal; money
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As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.
Economics