Answered

Welcome to Westonci.ca, the ultimate question and answer platform. Get expert answers to your questions quickly and accurately. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Title: Econ-U7-7.02-Std12-9

What does it mean to have an appreciated currency in the foreign exchange market?

A. The currency is weak.
B. The currency can buy a lot of foreign products (imports).
C. It causes capital flight.
D. Price level and real GDP output increase.

Sagot :

GinnyAnswer

Final answer:

Currency appreciation occurs when a currency's value increases, impacting imports and exports differently.


Explanation:

Currency appreciation in the foreign exchange market refers to when a currency's value increases compared to other currencies. This makes foreign goods cheaper, stimulating imports, but can hurt exports as domestic goods become relatively more expensive to foreigners. A stronger currency may lead to a rising trade deficit if not managed properly.


Learn more about Currency appreciation here:

https://brainly.com/question/31418184


Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.