When the Nominal Exchange Rate Changes from 4 Francs Per

question 143

Multiple Choice

When the nominal exchange rate changes from 4 francs per dollar to 6 francs per dollar, the dollar has:

• A)appreciated.
• B)depreciated.
• C)become overvalued.
• D)become undervalued.

---

Definitions:

Seasonal Index

A coefficient that modifies data to account for seasonal effects, facilitating more accurate trend analysis over time.

Forecasted Sales

Predicted revenues that a company expects to earn in a future period based on historical data, market trends, and analysis.

Trend Equation

A mathematical formula that describes the trend in a set of data, often used in time series analysis to forecast future values.

Seasonal Indicator

A statistical measure that captures seasonal patterns or fluctuations in data over specific periods.