Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?
A)An increase in the demand for domestic goods in the foreign market
B)A decrease in total imports made by the domestic country
C)A decrease in the interest rates in the domestic country
D)An increase in the short-term foreign investments
E)An increase in domestic production of import substitutes

Question

Quizplus · Accepted Answer

The Answer of Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?
A)An increase in the demand for domestic goods in the foreign market
B)A decrease in total imports made by the domestic country
C)A decrease in the interest rates in the domestic country
D)An increase in the short-term foreign investments
E)An increase in domestic production of import substitutes

Which of the Following Increases the Possibility of Depreciation of the Domestic