1. The value of a country's currency may increase by

A. continuous excessive government spending.

B. a stock market rally in that country.

C. an increase in that country's money supply.

D. more than one of the above.

2. Three years ago, the U.S. dollar's exchange rate with the Iceland krona was .0008 dollars per krona. Today, the exchange rate was .0006 dollars per krona. These figures indicate that over this three-year period, the dollar

A. strengthened against the krona.

B. weakened against the krona.

C. is not highly correlated to the krona.

D. the answer cannot be determined without knowing the number of kronas needed to buy a dollar.