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A currency depreciation on the foreign exchange market will: encourage imports t

ID: 1182294 • Letter: A

Question

A currency depreciation on the foreign exchange market will: encourage imports to the country whose currency has depreciated. discourage imports to the country whose currency has depreciated. discourage exports to the country whose currency has depreciated. encourage foreign travel by the citizens of the country whose currency has depreciated. All of the following would add to the demand for U.S. dollars except: long-term capital inflows. foreign travel by United States citizens. exports of commodities from the United States. travel by foreigners on United States airlines.

Explanation / Answer

1) a) encourage imports to the courty whose currency has depreciated 2)b)foreigh travel buy citizens