Any Decrease in Supply for Foreign Exchange, Other Things Constant

question 133

Multiple Choice

Any decrease in supply for foreign exchange, other things constant, will _____

• A) increase the number of foreign exchange units required to purchase dollars.
• 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:

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