Homework Answers
An appreciation of the currency will reduce the GDP of a country.
An appreciation of the domestic currency unambiguously increases the profits of domestic firms that have no foreign or export operation
An appreciation of the domestic currency reduces the reported profits of multi-national firms domiciled in the domestic country (assume no factor changes)
Appreciation of the currency means the government increase the value of the currency. it would decrease the export and improve the imports.
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