In a floating exchange rate system, an appreciation of the exchange rate could be caused by

a. a cut in taxes.
b. a decrease in government spending.
c. an increase in the domestic money supply.
d. a decrease in the foreign demand for U.S. goods.

A

Economics

You might also like to view...

What is the value of any index in the base period?

a. 200 b. 150 c. 110 d. 100 e. 105

Economics

What condition must be met in order for total spending to equal total output?

a. The sum of saving and government purchases must equal the sum of planned investment and net taxes. b. The sum of saving and net taxes must equal the sum of planned investment and government purchases. c. The sum of saving and planned investment must equal the sum of government purchases and net taxes. d. Saving must equal net taxes. e. The sum of saving and net taxes must equal planned investment minus government purchases.

Economics