i. Supply of dollars increases to buy French goods
ii. The value depreciates due to the increase of the supply of dollars
Note: the question is in complete. Full question is bellow:-
Assume that there is an increase in the United States demand for French goods. Explain how this increase in demand will affect each of the following.
(i) The supply of dollars
(ii) The international value of the dollar
Depreciation is the value reduction that happens over time as an item is used or gets older. When depreciation is taken into account, an item's value is expressed as its total depreciated value. The initial value of the object, its scrap value, and its anticipated age will all be taken into account in a mathematical formula that you will use to calculate this value.
Most of the time, it doesn't matter much how much your possessions depreciate when they're used for things other than business. However, businesses utilize the entire depreciated value to make decisions. Business owners can use this amount as a tax deduction to offset some of the money they lose due to the depreciation of their tangible or intangible depreciable property.
Learn more about depreciation
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