Whether the following statement is true or false, “ the value of the dollar will rise by 2% next week if our expectations are rational.” Introduction: Appreciation of currency means that the increase in the value of domestic currency is relative to foreign currency. Appreciation of currency makes foreign goods cheaper relative to the domestic goods.

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Chapter 7, Problem 18Q

To determine

Whether the following statement is true or false, “ the value of the dollar will rise by 2% next week if our expectations are rational.”

Introduction:

Appreciation of currency means that the increase in the value of domestic currency is relative to foreign currency. Appreciation of currency makes foreign goods cheaper relative to the domestic goods.

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