Which of the Following Is FALSE

question 48

Multiple Choice

Which of the following is FALSE?

• A)a rise in foreign income always improves a country's trade balance and leads to an increase in aggregate demand
• B)a rise in domestic interest rates improves a country's trade balance since it decreases imports
• C)an exchange rate depreciation improves a country's trade balance and thus increases aggregate demand
• D)an increase in domestic income worsens a country's trade balance since it increases spending on imports
• E)a decrease in exports leads to lower interest rates and a currency depreciation

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Definitions:

Quebec City

The capital city of the Canadian province of Quebec, known for its rich history and French heritage.

Huron Indians

A large North American Indigenous group, historically located in the Great Lakes region, known for their farming, trading, and strong societal organization.

John Rolfe

An early English settler in Virginia who is credited with the first successful cultivation of tobacco as a cash crop, which significantly influenced the colony's economy.

Pocahontas

A Native American woman notable for her association with the colonial settlement at Jamestown, Virginia, and her role in fostering peace between Native Americans and English settlers.