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ololo11 [35]
2 years ago
13

Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result o

f
Business
1 answer:
guajiro [1.7K]2 years ago
3 0

Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

<h3>What are floating exchange rates?</h3>
  • A floating exchange rate (also known as a fluctuating or flexible exchange rate) is a type of exchange rate regime in which the value of a currency is permitted to fluctuate in reaction to foreign exchange market occurrences.
  • A floating currency is one that uses a floating exchange rate, as opposed to a fixed currency, the value of which is determined in terms of material items, another currency, or a group of currencies (the idea of the last being to reduce currency fluctuations).
  • When the international value of a country's currency rises, so do its imports, and vice versa.

As it is given in the description itself, when the international value of a country's currency rises, so do its imports, and vice versa.

Therefore, Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will cause its imports to rise.

Know more about floating exchange rates here:

brainly.com/question/11160294

#SPL4

The question you are looking for is here:

Under a system of freely floating exchange rates, an increase in the international value of a nation's currency will ____.

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Gallerani Corporation has received a request for a special order of 4,300 units of product A90 for $26.90 each. Product A90's un
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Effect on income= $4,875 increase

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<u>To calculate the effect on income, we need to use the following formula:</u>

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