Question 6 With wars going on oversean, we are witnessing political instability abroad. If you are an nternational investor, this could make you worry that the value of your assets in these countries will decline, so you are considering purchasing more assets investnments in the United States. What would happen to the US dollar? O t would depreciate in foreign exchange markets making US. goods less expensive compared to foreign goods O h would depreciate in foreign exchange markets making US. goods more expensive compared to foreign goods. O would appreciate in foreign exchange markets making U.S goods more expensive compared to foreign goods O t would appeciate in foreign exchange markets making US. goods less expenaive compared to foreign goods.

Question 6 With wars going on oversean, we are witnessing political instability abroad. If you are an nternational investor, this could make you worry that the value of your assets in these countries will decline, so you are considering purchasing more assets investnments in the United States. What would happen to the US dollar? O t would depreciate in foreign exchange markets making US. goods less expensive compared to foreign goods O h would depreciate in foreign exchange markets making US. goods more expensive compared to foreign goods. O would appreciate in foreign exchange markets making U.S goods more expensive compared to foreign goods O t would appeciate in foreign exchange markets making US. goods less expenaive compared to foreign goods.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter29: International Finance

Section: Chapter Questions

Problem 8P

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