Figure 19.2

-Referring to Figure 19.2, a depreciation of the dollar is represented by a movement from point

Question

Figure 19.2
 
-Referring to Figure 19.2, a depreciation of the dollar is represented by a movement from point

Quizplus · Accepted Answer

A depreciation of the dollar means that the value of the dollar decreases relative to other currencies. This would be represented by a movement from point a to c, indicating that more dollars are needed to purchase the same amount of foreign currency, hence the dollar has depreciated.

Figure 19.2 -Referring to Figure 19.2, a Depreciation of the Dollar Is