Figure 15-1 -Refer to Figure 15-1. an Increase in U.S. Imports Would

question 162

Multiple Choice

Figure 15-1
-Refer to Figure 15-1. An increase in U.S. imports would shift the

• A) supply of dollars curve to the right.
• B) demand for dollars curve to the right.
• C) supply of dollars curve to the left.
• D) demand for dollars curve to the left.

Distinguish between foreign direct investment and foreign portfolio investment.

Analyze the relationship between saving, investment, and international capital flows.

Comprehend how changes in national saving and investment levels affect trade balances.

Understand the impact of exchange rates on international trade costs and trade deficits.

---

Definitions:

Cloth

A material made from fibers, woven or knitted together, used to make garments and other items.

Severe Drought

An extended period of exceptionally low rainfall, leading to a shortage of water.

Wheat Crop

Wheat crop refers to the cultivation of wheat plants for the purpose of producing wheat grains, which are a staple food in many countries and used in making flour for bread, pasta, and other products.

Supply

The total amount of a product or service available for purchase at any given price.