A decline in the exchange rate means that
a. the price of foreign exchange has declined.
b. foreign currency has appreciated while the dollar has depreciated.
c. foreign currency has depreciated while the dollar has appreciated.
d. either a or c
D
You might also like to view...
In the late 1990s, debt-financed government spending decreased in Mexico. Following this decrease, consumption spending increased. Ricardian equivalence would explain this increase in consumption as the result of:
a. people's expectation of higher future taxes required to pay off government debt. b. people's expectation of lower future taxes that induce them to save less. c. automatic stabilization of the economy. d. the crowding out effect. e. an increase in current household disposable income.
A decrease in demand and an increase in supply are indicated by a. Upward shifts in both curves
b. Downward shifts in both curves. c. Rightward shifts in both curves. d. Leftward shifts in both curves.