An Increase in U

question 119

Multiple Choice

An increase in U.S.income that increases American demand for all normal goods (including imports from Britain) will shift

• A)the U.S.demand curve for foreign exchange to the right, causing an increase in the dollar-per-pound exchange rate
• B)the U.S.demand curve for foreign exchange to the left, causing a decrease in the dollar-per-pound exchange rate
• C)the U.S.supply curve for foreign exchange to the right, causing a decrease in the dollar-per-pound exchange rate
• D)the U.S.supply curve for foreign exchange to the left, causing an increase in the dollar-per-pound exchange rate
• E)neither the U.S.demand curve for foreign exchange nor the U.S.supply curve for foreign exchange

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Definitions:

Multiplicative Form

A mathematical expression where quantities are multiplied together, often used in statistical models to represent relationships between variables that have an exponential or geometric effect.

Additive Form

A mathematical or modeling technique where components are added together to form a total, often used in calculations of sums, totals, or composite measurements.

Moving Average Forecast

A method used in forecasting that calculates the average of a series of data points over specific time intervals to identify trends.

Observable Trend

A noticeable movement or direction in data over a period of time that can be analyzed and used for forecasting.