Any Increase in the Demand for Foreign Exchange, Other Things

question 136

Multiple Choice

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

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

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Definitions:

Education Level

A measure of the highest level of schooling or training a person has received, often used as an indicator of workforce skill and economic potential.

Degree of Substitutability

The extent to which one good can replace another in consumption or production, impacting competitive market dynamics.

Permanent Residents

Individuals who have been granted the right to live indefinitely within a country other than the one of their citizenship, with certain rights and obligations.