If the demand for a countryʹs currency increases, the currency
A) could either appreciate, depreciate, or stay the same.
B) stays the same.
C) depreciates.
D) appreciates.

Question

Quizplus · Accepted Answer

When the demand for a country's currency increases, there are more buyers for the currency and therefore the value of the currency will increase. This is known as currency appreciation.

If the Demand for a Countryʹs Currency Increases, the Currency