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    Exam 9: The Exchange Rate and the Balance of Payments
  5. Question
    -Using the Above Figure, an Increase in the Demand for Dutch
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-Using the Above Figure, an Increase in the Demand for Dutch

Question 29

Question 29

Multiple Choice

  -Using the above figure, an increase in the demand for Dutch goods by U. S. consumers will lead to A)  a depreciation in the Dutch currency (i.e. the guilder) . B)  an appreciation in the Dutch currency. C)  an increase in the supply of Dutch currency as foreign exchange. D)  a decrease in the supply of Dutch currency as foreign exchange.
-Using the above figure, an increase in the demand for Dutch goods by U. S. consumers will lead to


A) a depreciation in the Dutch currency (i.e. the guilder) .
B) an appreciation in the Dutch currency.
C) an increase in the supply of Dutch currency as foreign exchange.
D) a decrease in the supply of Dutch currency as foreign exchange.

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