If the dollar depreciates relative to other currencies, which of the following is true?
a. It takes more of the other currency to buy a dollar
b. It takes less of the other currency to buy a dollar.
c. There is no change in the amount of the currency needed to buy a dollar.
d. Not enough information to determine.
b
You might also like to view...
What are the key differences between how we illustrate an expansionary fiscal policy in the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand and aggregate supply model?
What will be an ideal response?
In order to increase the confidence of investors, the new President of Montesia provides lucrative tax incentives to its investors. This will result in a(n):
a. increase in the level of planned investment spending of firms b. decrease in the level of investment spending that is financed through borrowed money. c. decrease in the level of production of firms. d. increase in the average price level of the economy.