Practice Quiz

CLEP Economics Exam Prep

Category - Economics

Start a Study Session Sign up for Question of the Day
If consumers from Country X greatly increase their purchases of products from Country Y, the value of these two countries' currencies relative to one another will change in which of the following ways?
  1. The values of both countries' currencies will increase.
  2. The value of Country X's currency will increase; the value of Country Y's currency will decrease.
  3. The value of Country X's currency will decrease; the value of Country Y's currency will increase.
  4. The values of both countries' currencies will decrease.
Explanation
Answer: C - The value of Country X's currency will decrease; the value of Country Y's currency will increase.
Previous Next
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz