MCQOPTIONS
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| 1. |
Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an) ? |
| A. | increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar |
| B. | increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar |
| C. | decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar |
| D. | decrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar |
| Answer» C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar | |