--%>

Increase in the American dollar price of the South Korean

“An increase in the American dollar price of the South Korean won implies that the South Korean won has depreciated in value.”  Explain.

E

Expert

Verified

This is a false statement.  It implies just the opposite.  If the price of the South Korean won has risen, this means it has appreciated in value by definition.  It now takes more dollars to buy a won, which means the dollar has lost purchasing power.  It is the dollar that has depreciated against the won.

   Related Questions in Business Economics

  • Q : Unpredictable and frequent fluctuations

    Adam Smith attributed unpredictable and frequent fluctuations within profits to: (i) variations in the prices of the goods a firm or person produces and sells. (ii) the bad or good fortune of rivals. (iii) the good or bad fortune of customers. (iv) tr

  • Q : Allocative Mechanisms-market based

    The market-based economic system: (1) Appears to be ‘natural’ as it has existed in all societies. (2) Has dominated the economic relationships in United States since from the year1492. (3) Guided resource allocation in middle ages. (4) Is

  • Q : Difference between normal and inferior

    Difference between normal goods and inferior goods. Give illustration.

  • Q : Checkout problem A grocery store chain

    A grocery store chain is considering ways to improve the performance of the waiting lines at their checkout stands. A heavily trafficked checkout stand is monitored for 120 min. In that period, 60 customers have their groceries rung up, and depart from the store. The

  • Q : Illustrate the 3rd the government

    Illustrate the 3rd the government redistributes income?

  • Q : How can we compute operating leverage

    How can we compute operating leverage?

  • Q : The financial investor about bonds

    Describe three ways to finance corporate activity.  Make a case that stocks are more risky for the financial investor than are bonds?

  • Q : What do you mean by Shuffling the Deck

    What do you mean by Shuffling the Deck?

  • Q : Characteristic of an oligopolistic

    Which of the given is a quality of an oligopolistic market structure? w) There are only some dominant sellers. x) every firm sells a unique product. y) this is easy for new firms to enter the industry. z) Each firm require not react to the actions of

  • Q : Individual sellers and buyers in

    Both individual sellers and buyers within perfect competition: w) can affect the market price through their own individual actions. x) can affect the market price by joining along with some of their competitors.  y) have to take the market price as a specified. z