When a Country Uses a Flexible (Or Floating)exchange Rate and Transactions

question 20

Multiple Choice

When a country uses a flexible (or floating) exchange rate and transactions increase the supply of its currency,the country's:

• A) products become more expensive to others.
• B) currency depreciates.
• C) currency appreciates.
• D) trade deficit increases.

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Definitions:

Alpha Particle

A type of radioactive particle consisting of two protons and two neutrons, equivalent to a helium-4 nucleus, ejected from certain radioactive nuclei.

Beta Particle

An electron or positron, characterized by its high speed and energy, released by an atomic nucleus undergoing radioactive decay.

Gamma Ray

High-energy electromagnetic radiation emitted by atomic nuclei during radioactive decay, with higher energy than X-rays.

Radiation Sickness

A serious illness caused by excessive exposure to ionizing radiation, affecting the skin, gastrointestinal tract, and bone marrow.