2. An exchange rate appreciation is O an increase in the price of one currency i
ID: 2438945 • Letter: 2
Question
2. An exchange rate appreciation is O an increase in the price of one currency in terms of another currency O a decrease in the price of one currency in terms of another currency the rate at which you can exchange one currency for another. the rate at which you can exchange the goods and services of one country for the goods and services of another. 3. An exchange rate depreciation is: O an increase in the price of one currency in tdms of another currency O a decrease in the price of a currency in terms of another currency O the rate at which you can exchange one currency for another 0 the rate at which you can exchange the goods and services of one country for the goods and services of another 1. Figure: Yuan Foreign Exchange Market for U.S. Dollars yuanvs Ss B yuan's h.... Ds Refcrence Ret 204 38-4) Qs Figure: Yuan Foreign Exchange Market for U.S. Dollars) Based on this figure, if Americans begin to import more from China, which of the f 10 yuan per dollar nine yuan per dollar eight yuan per dollar seven yuan per dollar Remaining: 2:37:00 Start: 118 ANExplanation / Answer
1) If there is appreciation in exchange rate than it means that there is increase in value of one country currency over other country currency.
Answer: increase in price of one currency over terms of other currency.
2) If there is a depreciation in exchange rate than there will be a decrease in value of one country currency over other country currency.
Answer: decrease in price of currency over other country currency.
3) From the graph it is clear that the market equilibrium price is 8 yuan per dollar. So at that price America began to import from China.
Answer: eight yuan per dollar.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.