TRUE OR FALSE ???

A negative supply shock will lead to a depreciation of the domestic currency (Hint: draw a picture) A B I IE 2 & ! 0 5 U S X, X A simultaneous negative supply and demand shocks will definitely cause the domestic currency to appreciate. A- B I E E ! 9 2 V $ x x mil M in a foreign exchange market, an increase in demand for foreign exchange will cause a shift in the demand curve for foreign exchange to the left. This, in turn, will lead do a depreciation of the domestic currency. A B I !!! III P2 5 c U p . x if the internal rate of return exceeds the weighted average cost of capital, the net present value of the project will be negative - B I ili III P & ! * 5 c U S X, X > R : I The internal rate of return is the discount rate that is used to compute the present value of a project. - B I !!! III 9 & ! ** 5 c U S x X E 3 > x