Multiple Choice
Suppose there are only two countries in the world,countries A and B.If the currency of country A appreciates,the currency of country B
A) can appreciate relative to other countries.
B) must appreciate.
C) may appreciate or depreciate,depending on the elasticity of demand for the exports of country A.
D) must depreciate.
E) may appreciate or depreciate,depending on the volume of trade between the two countries.
Correct Answer:

Verified
Correct Answer:
Verified
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