An Increase in Demand for a Nation's Currency in the Foreign

question 111

Multiple Choice

An increase in demand for a nation's currency in the foreign exchange market will:

• A) cause the nation's currency to appreciate.
• B) make it more expensive for the nation to import goods.
• C) cause the nation's balance on current account to shift toward a surplus.
• D) make it less expensive for foreigners to buy the nation's goods.

---

Definitions:

Null Hypothesis

A statistical assumption positing that there is no meaningful difference or association between specified attributes or variables.

One-way ANOVA

A statistical test that compares the means of three or more independent groups using variance analysis to determine if at least one group mean is significantly different from the others.

Freshman

Typically refers to a student in their first year of study in high school or college.

Variability

The amount of differences in a distribution of data for a variable.