Under a flexible exchange system, which of the following will most likely cause a nation's currency to appreciate on the foreign exchange market?
a. an acceleration in the nation's inflation rate
b. a balance of trade deficit
c. a current account deficit
d. a decline in the domestic inflation rate
D
Economics
You might also like to view...
If you earn and spend $2,000 per month and maintain an average cash balance of $500 per month, your velocity of money is
A) $1,250. B) 2. C) 4. D) $1,500.
Economics
The relationship among interest rates on bonds that all mature at the same time is known as the
A) term structure of interest rates. B) risk structure of interest rates. C) term premium. D) Treasury yield.
Economics