Suppose a Report Was Released Today That Showed the Euro-Zone

question 56

Multiple Choice

Suppose a report was released today that showed the Euro-Zone inflation rate is running above the European Central Bank's inflation rate target. This leads people to expect that the European Central Bank will enact contractionary policy in the near future. Everything else held constant,the release of this report would immediately cause the demand for U.S. assets to ________ and the U.S. dollar will ________.

• A)increase;appreciate
• B)increase;depreciate
• C)decrease;appreciate
• D)decrease;depreciate

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Definitions:

Influenced

The capacity or power of persons or things to be a compelling force on the actions, behavior, opinions, etc., of others.

Communicator Attractiveness

The degree to which the physical, social, or intellectual appeal of a communicator increases the effectiveness of the communicated message.

Physical Appearance

The external physical characteristics of an individual, including features, body shape, clothing, and other visible attributes.

Peripheral Route

A method of persuasion that relies on superficial cues or associative reasoning, rather than systematic thinking about the content of a message.