Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?
a. An increase in the demand for domestic goods in the foreign market
b. A decrease in total imports made by the domestic country
c. A decrease in the interest rates in the domestic country
d. An increase in the short-term foreign investments
e. An increase in domestic production of import substitutes
d
You might also like to view...
The tendency of the prices of identical baskets of goods across countries to converge: a. Is weaker to the extent the countries compared have substantial tariffs on imported goods. b. Is weaker to the extent the countries compared have limiting quotas on imported goods. c. Is weaker for goods and services not traded internationally
d. All of the above are true.
The equilibrium wage rate in an industry is determined by
A) finding where the market supply curve indicates that the substitution effect and income effect of a wage increase are offsetting. B) the intersection of the market demand curve for labor and the market supply curve for labor. C) the strength of the substitution effect relative to the elasticity of demand for labor. D) whether workers or management are better at negotiating.