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

question 78

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 Canadian assets to ________ and the Canadian dollar will ________.

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

Understand the effectiveness and techniques of paraphrasing in communication.

Identify situations where messages containing threats can be strategically used.

Explore techniques to establish and communicate expertise.

Determine factors influencing the credibility and believability of a communicator.

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Definitions:

FICA

Federal Insurance Contributions Act, the U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.

FICA Taxes

Federal Insurance Contributions Act taxes, funding Social Security and Medicare, deducted from employee paychecks and matched by employers.

Federal Income Tax

A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Tax Liability

The total amount of tax owed by an individual, corporation, or other entity to a taxing authority, such as the federal government.