Use the Following to Answer Questions

question 186

Multiple Choice

Use the following to answer questions .
Exhibit: A Fixed Exchange Rate
-(Exhibit: A Fixed Exchange Rate) Suppose the exchange rate between the dollar and the British pound is fixed at £0.3 per dollar. Now suppose U.S. residents choose to purchase more British goods and services. What happens in the foreign exchange market?

• A) The demand curve for dollars increases, and the equilibrium exchange rate for the dollar (in terms of pounds) rises.
• B) The supply curve for dollars increases, and the equilibrium exchange rate for the dollar (in terms of pounds) falls.
• C) The demand curve for dollars decreases, and the equilibrium exchange rate for the dollar (in terms of pounds) falls.
• D) The supply curve for dollars decreases, and the equilibrium exchange rate for the dollar (in terms of pounds) rises.

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Definitions:

Mirror Neurons

Neurons that fire whenever an animal performs an action, such as stretching out its arm or reaching toward a target, and also whenever the animal watches another performing the same action.

Tongue Movements

The motion and actions of the tongue, which are essential for various functions such as speaking, eating, and swallowing.

Frightening Facial Expression

A facial expression typically identified by widened eyes, raised eyebrows, and other facial movements that convey fear or horror.

Mirror Neurons

Specialized neurons that fire both when an individual acts and when the individual observes the same action performed by another. This mirroring process is thought to be essential for understanding others' actions and intentions.