Identify Whether Each of the Following Would Lead to an Appreciation

question 95

Essay

Identify whether each of the following would lead to an appreciation or depreciation of the dollar. In each case, explain why the currency either appreciates or depreciates.
(a) U.S. citizens switch from buying stock in British companies to buying stock in U.S. companies.
(b) The inflation rate in the United States increases relative to the inflation rate in England.
(c) The money supply is increased in the United States.

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Definitions:

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