When Americans or Foreigners Expect the Return on ________ Assets

question 72

Multiple Choice

When Americans or foreigners expect the return on ________ assets to be high relative to the return on ________ assets,there is a higher demand for dollar assets and a correspondingly lower demand for foreign assets.

• A)dollar;dollar
• B)dollar;foreign
• C)foreign;dollar
• D)foreign;foreign

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Definitions:

Price Discrimination

A strategy where a provider sells identical or similar goods or services at varied prices in diverse markets.

Efficient Output

The level of production at which a firm or economy can produce goods at the lowest average cost, maximizing resource use without waste.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Price Discrimination

A pricing strategy where the same product or service is sold at different prices to different customers, based on factors like demand, market conditions, or purchasing power.