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.
