True or False? 1. The demand for foreign goods implies supplying the domestic currency. 2. If a nation's...

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Finance

True or False?
1. The demand for foreign goods implies supplying the domesticcurrency.
2. If a nation's currency rises in value, foreigners canpurchase more of that nation's output.
3. The devaluation of one currency implies a revaluation ofother currencies.
4. If the American dollar is devalued, American goods are moreexpensive to people holding dollars.
5. The International Monetary Fund may lend currency reserves toa nation with a deficit in its merchandise trade balance.
6. The political climate abroad will affect the risk associatedwith foreign investments.

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1 The demand for foreign goods implies supplying the domestic currency FALSE The demand for foreign goods implies supplying that foreign currency from where goods are imported 2 If a nations currency rises in value foreigners can purchase more of that nations output FALSE Only lesser quantity See Answer

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