A Leftward Shift of a Country's Demand Curve for Foreign

question 86

Multiple Choice

A leftward shift of a country's demand curve for foreign exchange will:

• A)increase the price of foreign exchange in the country.
• B)decrease the value of its currency.
• C)make foreign goods more expensive in the domestic market.
• D)make foreign goods less expensive in the domestic market.
• E)make its goods less expensive in the foreign market.

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Definitions:

Unimpaired

In a state of being undamaged, unaffected, or able to function at full capacity without any reduction in value or quality.

Optimization

The process of making something as fully perfect, effective, or functional as possible, often by using mathematical models or algorithms.

Equity

Fairness or justice in the way people are treated, often considered in contexts like economics, law, and social issues.

Efficiency

The extent to which resources such as time, energy, or materials are used well to achieve desired results, minimizing waste.