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Initially, the exchange rate between South Korean won and Tunisian dinar is in equilibrium. Then, there is a decrease in demand for Tunisian dinar. As a result of a decrease in demand for Tunisian dinar,
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Initially, the exchange rate between South Korean won and Tunisian dinar is in equilibrium. Then, there is a decrease in demand for Tunisian dinar. As a result of a decrease in demand for Tunisian dinar, what happens to South Korea's currency in relation to Tunisia's currency

User Maxime Jallu
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Answer:

it appreciates

Step-by-step explanation:

Exchange rate is the rate at which one currency is exchanged for another currency.

If the demand of the Tunisian dinar decreases, supply of the currency would exceed the demand for the currency. as a result of this, the value of the Tunisian dinar falls , it depreciates and the won appreciates.

User Redandwhite
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