An appreciation of the domestic currency relative to a foreign currency will: A. Make domestic goods more expensive for foreign buyers. B. Make foreign goods more expensive for domestic buyers. C. Decrease the price of domestic goods in the domestic market. D. Increase the trade deficit.
An appreciation of the domestic currency relative to a foreign currency will: A. Make domestic goods more expensive for foreign buyers. B. Make foreign goods more expensive for domestic buyers. C. Decrease the price of domestic goods in the domestic market. D. Increase the trade deficit.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Open-economy Macroeconomics: Basic Concepts
Section: Chapter Questions
Problem 4CQQ
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An appreciation of the domestic currency relative to a foreign currency will:
A. Make domestic goods more expensive for foreign buyers.
B. Make foreign goods more expensive for domestic buyers.
C. Decrease the
D. Increase the
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