Asked by
Mshary Alrashedi
on Oct 11, 2024
Verified
Suppose that the tastes of U.S.beer drinkers shift from domestic brands toward more expensive brands imported from Germany.If this change is large enough,it will cause the ___ for foreign currencies to increase,and the dollar to _______.
A) demand;appreciate
B) demand;depreciate
C) supply;appreciate
D) supply;depreciate
Domestic Brands
Brands that originate from and are marketed within a country's borders, often tailored to local tastes, culture, and preferences.
Foreign Currencies
Currencies used in international trade and investment, different from the domestic currency of a particular country.
- Gain insight into the connection between exchange rates and the import and export demand.
- Recognize the elements contributing to the rise or fall in currency value.
Verified Answer
SR
Learning Objectives
- Gain insight into the connection between exchange rates and the import and export demand.
- Recognize the elements contributing to the rise or fall in currency value.