Which of the Following Increases the Possibility of Depreciation of the Domestic

Multiple Choice

Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?

A) An increase in the demand for domestic goods in the foreign market
B) A decrease in total imports made by the domestic country
C) A decrease in the interest rates in the domestic country
D) An increase in the short-term foreign investments
E) An increase in domestic production of import substitutes