It countries A and B are the only two countries in the world, then if the currency of country A appreciates, the currency of country B Oa Can appreciale relative to other countries Ob May appreciate or depreciate, depending on the volume of trade between the two countries OC Must appreciate Od Must depreciate Ce May appreciate or depreciate, depending on the elasticity of demand for the exports of country A
It countries A and B are the only two countries in the world, then if the currency of country A appreciates, the currency of country B Oa Can appreciale relative to other countries Ob May appreciate or depreciate, depending on the volume of trade between the two countries OC Must appreciate Od Must depreciate Ce May appreciate or depreciate, depending on the elasticity of demand for the exports of country A
Chapter29: International Finance
Section: Chapter Questions
Problem 8P
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