Anything That Increases the Demand for Foreign Goods Relative to Domestic

question 38

Multiple Choice

Anything that increases the demand for foreign goods relative to domestic goods tends to ________ the domestic currency because domestic goods will only continue to sell well if the value of the domestic currency is ________,everything else held constant.

• A)depreciate;lower
• B)depreciate;higher
• C)appreciate;lower
• D)appreciate;higher

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and financial reporting by organizations, which may not align with the calendar year.