Exhibit 20-8
-In Exhibit 20-8 a movement from point A to F represents a depreciation in the value of the dollar.

Question

Exhibit 20-8 
-In Exhibit 20-8 a movement from point A to F represents a depreciation in the value of the dollar.

Quizplus · Accepted Answer

In Exhibit 20-8, the horizontal axis represents time and the vertical axis represents exchange rate or value of the dollar. A movement from point A to F represents a depreciation in the value of the dollar, as it takes more dollars to buy the same amount of foreign currency at point F compared to point A.

Exhibit 20-8 -In Exhibit 20-8 a Movement from Point a to F