Under a System of Flexible Exchange Rates, a Decrease in the Demand

question 102

Multiple Choice

Under a system of flexible exchange rates, a decrease in the demand for a country's currency on the foreign exchange market will:

• A)​cause the country's currency to depreciate in value.
• B)​cause the country's currency to appreciate in value.
• C)​make the country's goods more expensive to foreigners.
• D)​make foreign goods less expensive to the country's citizens.