QUESTION 7 The nominal exchange rate measures O the amount of domestic consumption that trades for one unit of foreign consumption O the amount of domestic GDP that trades for one unit of foreign GDP O the amount of domestic currency that trades for one unit of foreign currency O Both A and B are correct QUESTION 8 "If a currency depreciates, then it will require. units of domestic currency to buy one unit of a foreign currency." O more O fewer the same QUESTION 9 "If the euro appreciates relative to the dollar, then the purchasing power of the euro has relatively O increased O decreased O not changed QUESTION 10 Suppose the yuan has appreciated relative to the euro. This necessarily implies that the O euro has appreciated relative to the yuan O euro has depreciated relative to the yuan O euro has appreciated relative to the dollar O euro has depreciated relative to the dollar QUESTION 11 Demand for a currency is driven by demand for a country's O goods O services O assets O all of the above QUESTION 12 "According to the simple model of derived demand, if demand for Japanese goods increases globally, then the yen will" depreciate O appreciate remain unchanged