If the US Exchange Rate Increases Relative to Currencies in Other Countries

question 152

Multiple Choice

If the U.S. exchange rate increases relative to currencies in other countries, then

• A) imports and exports of the United States will both increase.
• B) imports and exports of the United States will both decrease.
• C) imports of the United States will decrease and exports of the United States will increase.
• D) imports of the United States will increase and exports of the United States will decrease.

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Definitions:

Geologic Cross Section

A diagram or representation showing the vertical profile of the Earth's crust to illustrate the positions of rock layers and structures.

Fossil Fuels

Natural fuels formed from the remains of living organisms, such as coal, oil, and natural gas.

Gas Hydrate

An icelike solid mixture of water and a natural gas, usually methane.

Coal-bed Methane

A type of natural gas extracted from coal beds, often used for heating and generating electricity.