The figure given below depicts the IS-LM-FE model with floating exchange rates. The domestic currency:
A)is under the pressure to appreciate.
B)is under the pressure to depreciate.
C)can remain relatively stable.
D)is at its possible highest value in the foreign exchange market vis-à-vis other currencies.

Question

The figure given below depicts the IS-LM-FE model with floating exchange rates.  The domestic currency:
A)is under the pressure to appreciate. 
B)is under the pressure to depreciate. 
C)can remain relatively stable. 
D)is at its possible highest value in the foreign exchange market vis-à-vis other currencies.

Quizplus · Accepted Answer

The Answer of The figure given below depicts the IS-LM-FE model with floating exchange rates.  The domestic currency:
A)is under the pressure to appreciate. 
B)is under the pressure to depreciate. 
C)can remain relatively stable. 
D)is at its possible highest value in the foreign exchange market vis-à-vis other currencies.

The Figure Given Below Depicts the IS-LM-FE Model with Floating