From Which of the Following Does a Nation's Demand for Foreign

question 6

Multiple Choice

From which of the following does a nation's demand for foreign exchange arise?

• A)From the inflow of foreign investments
• B)From the sale of the foreign currency by the speculators when they expect the foreign currency to depreciate
• C)From speculators when they expect the foreign currency to appreciate
• D)Both a & c

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Definitions:

Demand Curve

A graphical representation in economics showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Monopolistically Competitive Market

An economic setup in which numerous companies offer goods that are alike but not identical, granting them some level of control over the market.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Average Total Cost

The total cost of production divided by the total output or quantity produced.