Which of the following would not be a result of rising commodity prices?
A) a depreciating currency
B) an appreciating currency
C) an increase in the supply of foreign exchange
D) an increase in real GDP
E) no change in the exchange rate

Question

Quizplus · Accepted Answer

Rising commodity prices often lead to an appreciating currency as the country exporting the commodities receives more foreign currency, increasing demand for its own currency. This can also lead to an increase in the supply of foreign exchange and potentially an increase in real GDP. A depreciating currency is not typically a result of rising commodity prices.

Which of the Following Would Not Be a Result of Rising