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(Figure: Exchange Rate Shifts) When Demand for U

Question 134

Multiple Choice

(Figure: Exchange Rate Shifts) When demand for U.S. goods increases, the U.S. dollar will _____, and the equilibrium exchange rate will shift from _____ to _____. (Figure: Exchange Rate Shifts) When demand for U.S. goods increases, the U.S. dollar will _____, and the equilibrium exchange rate will shift from _____ to _____. A) depreciate; e<sub>1</sub>; e<sub>0</sub> B) depreciate; e<sub>0</sub>; e<sub>1</sub> C) appreciate; e<sub>0</sub>; e<sub>1</sub> D) appreciate; e<sub>1</sub>; e<sub>0</sub>


A) depreciate; e1; e0
B) depreciate; e0; e1
C) appreciate; e0; e1
D) appreciate; e1; e0

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