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:

Decisions

The process of making choices between alternatives to achieve a goal or solve a problem.

Resides

Refers to where something or someone is located or lives.

Individual

A single human being as distinct from a group, class, or family.

Lack of Autonomy

Describes a situation in which individuals have little to no control or independence in their work or decision-making processes.