suppose the dollar is subject to a floating exchange rate system and that r is the number of dollars per unit of foreign exchange. if r increases, then the dollar

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Answer 1

Suppose the dollar is subject to a floating exchange rate system and that r is the number of dollars per unit of foreign exchange. if r increases, then the dollar depreciates.

What is Floating Exchange Rate System?

Exchange rates between two currencies can fluctuate depending on the supply and demand for foreign currency in the foreign exchange market. This is known as a floating exchange rate system. The system is comparable to a market for goods, where demand and supply are free forces that decide a good's price.

So, A currency with a floating exchange rate is one whose value is affected by supply and demand in relation to other currencies. A fixed exchange rate, often known as a pegged rate, is one that is totally controlled by the government of the currency in question, as opposed to a floating exchange rate.

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Related Questions

Hannah is interested in becoming a scientific photographer one day and knows that obtaining a career in this specialized area requires dedication to photographic principles and a working knowledge of a few specific areas. What areas should Hannah develop knowledge in to go further as a scientific photographer?

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In a case whereby Hannah is interested in becoming a scientific photographer one day and knows that obtaining a career , areas should Hannah develop knowledge in to go further as a scientific photographer are

biology chemistry medicine astronomy engineering

What is a career ?

Career can be described as the occupational path that individuals decide to follow in hisd life time and this can be described as the job of the person.

It shopuld be noted that for since Hannah is interested in becoming a scientific photographer  and want to get a career in it then she should focus on getting knowlege on chemistry , enginering and others.

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What are the five arts movements?

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The five arts movements are Dada/ Dadaism, Digital art, Expressionism, Fauvism, Futurism and Harlem Renaissance.

Dada/Dadaism, Digital art, Expressionism, Fauvism, Futurism, and the Harlem Renaissance are the five art movements. Artists have created art throughout history using a range of media and styles while adhering to various ideologies and values. Different artistic trends or styles can be categorized under collective names known as art movements, despite the fact that labeling can frequently be seen as being reductive.

An art movement is a tendency or style in art that a group of artists followed for a set amount of time (typically a few months, years, or decades), or at least with the movement's peak defined within a certain number of years.

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What is an example of an artistic movement?

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The idea of movement in art is to create pictures that seem to be moving. It can also refer to the eye's path through the piece of art, which is frequently done to convey a sense of motion or to highlight a specific area, also known as a focal point.

In order to evoke a sensation of motion or to indicate the path the viewer's eye should take over the surface of the piece, an artist employs aspects of art such as line, color, shape, form, and space. In order to control the flow of a painting, he also employs contrasting colors, patterns, and parallel lines. This idea has been employed by artists for ages to produce aesthetically and physically striking works of art. In art, the sensation of movement may be both thrilling and frightening, producing feelings of fear or even apprehension.Regardless of the outcome, movement is a crucial component of many artistic mediums, and its strength lies in its capacity to animate and breathe life into a still image.

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