An increase in the value of domestic currency in terms of foreign currencies under fixed exchange rate is known as??

Q: If a country’s exchange rate depreciates what would be the most likely impact on exports, imports…

A: Depreciation would increase exports.

Q: The exchange rate between the US$ and the C$ declines from US$1.2158 to US$1.2012 per C$. What will…

A: Here  $1 C  = US $ 1.2158  hence US $1 = $(1/1.2158) C  US $2000 = $ ( 1/1.2158) x 2000 C  US $2000…

Q: Explain the factors that might cause a country’s exchange rate to depreciate.

A: A fall in the conversion scale/exchange rate is known as a depreciation in the conversion scale. It…