Under a floating exchange-rate system, if American exports decrease and American imports rise, the value of the dollar will: A. Appreciate B. Depreciate C. Be officially revalued D. Be officially devalued

Under a floating exchange-rate system, if American exports decrease and American  imports rise, the value of the dollar will:
A. Appreciate  
B. Depreciate
C. Be officially revalued
D. Be officially devalued
by

1 Answer

Answer :

B. Depreciate
by

Related questions

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Last Answer : A. Appreciate

Given an initial equilibrium in the money market and foreign exchange market, suppose the Federal Reserve increases the money supply of the United States. Under a floating exchange-rate system, the dollar would: A. Appreciate in value relative to other currencies B. Depreciate in value relative to other currencies C. Be officially devalued by the government D. Be officially revalued by the government

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Last Answer : What is the answer ?

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