If the Fed Announces That It Will Decrease U

question 20

Multiple Choice

If the Fed announces that it will decrease U.S. interest rates, and the European Central Bank takes no action, then the value of the euro will ____ against the value of U.S. dollar (holding other factors constant) .

• A) be unchanged
• B) Depreciate
• C) Appreciate
• D) depreciate but only briefly

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Definitions:

Frequency Bar Chart

A graphical representation using bars to show how often each different value in a set of data occurs.

Car Dealer

A business entity that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary.

Overall Service

A term referring to the totality of services provided by an organization, assessed based on quality, efficiency, and customer satisfaction.

Pie Chart

A pie chart segmented into slices to illustrate the percentages of a total.