A depreciation in the value of the U.S. dollar would:
A. encourage foreigners to travel on American owned airlines.
B. make U.S. goods more expensive to foreign consumers.
C. decrease the number of dollars it takes to buy a Swiss franc.
D. make it more expensive for U.S. citizens to travel abroad.
Answer: D
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If the percentage change in the quantity demanded is not zero but is less than the percentage change in the price, demand is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
What happens to the Canadian monetary base if there is an excess supply of 100 million euros in the foreign exchange market, which the Bank of Canada purchases?
a. The Canadian monetary base falls by 100 million euros worth of Canadian dollars. b. The Canadian monetary base falls. The amount depends on the size of the money multiplier c. The Canadian monetary base might fall or rise. d. The Canadian monetary base rises by 100 million euros worth of Canadian dollars. e. The Canadian monetary base rises. The amount depends on the size of the money multiplier.