Figure 10-2 -Refer to Figure 10-2. the Demand for Dollars Curve Slopes

question 63

Multiple Choice

Figure 10-2
-Refer to Figure 10-2. The demand for dollars curve slopes downwards because

• A) a higher exchange rate tends to make U.S. goods and services more expensive for foreigners, thereby generating a lower quantity of dollars in the foreign exchange market.
• B) a higher exchange rate tends to make U.S. goods and services cheaper for foreigners, thereby generating a lower quantity of dollars in the foreign exchange market.
• C) a lower exchange rate tends to decrease U.S. exports, which raises the price of foreign currency in the foreign exchange market.
• D) a lower exchange rate tends to increase U.S. imports, thereby raising the price of foreign currency in the foreign exchange market.

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Definitions:

Contradictory Propositions

Propositions that cannot both be true at the same time, as they make opposite claims.

Forms

In philosophy, especially in Platonic thought, the ideal or perfect essence of something, which exists beyond the physical representation.

Contradictory

Qualities, statements, or propositions that are in direct opposition to each other, such that if one is true, the other must be false.

Proposition

A statement or assertion that expresses a judgment or opinion, which can be analyzed as true or false.