Any Increase in the Demand for Foreign Exchange, Other Things

question 164

Multiple Choice

Any increase in the demand for foreign exchange, other things constant, will _____

• A) increase the number of dollars required to purchase one unit of foreign exchange.
• B) decrease the number of dollars required to purchase one unit of foreign exchange.
• C) cause the dollar to appreciate.
• D) cause the foreign currency to depreciate.
• E) have no effect.

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Definitions:

Simulation

The use of a model to replicate and understand the behavior of a system or process over time.

Component

A constituent part of a larger whole, used in various contexts from electronics to software engineering to describe an element or piece that plays a specific role.

Outcomes

The results or consequences of actions, processes, or experiments, which can be measured and analyzed.

Pseudorandom Numbers

Numbers that are generated using deterministic algorithms that approximate the properties of random numbers.