Question

A booming economy

	a.	will bring about an appreciation of the exchange rate.
	b.	will bring about a depreciation of the exchange rate.
	c.	will bring about no changes to the exchange rate.
	d.	none of the above.

Answer 1

The correct answer is a.

In general terms,
a booming economy is a strong economy which is having a very high interest payout rates to the investors and this will inturn reduces/stabilizes the inflation and it will boosts the confidence to the both businessmen and customer.
also it has a very high output and because of more number of companies one can expect a lower level of unemployment
It has vast export network to other countries and increased the level of investment in entities and forex reserves.