Use the Following to Answer Questions

question 68

Multiple Choice

Use the following to answer questions .
Exhibit: Foreign Exchange Market
-(Exhibit: Foreign Exchange Market) The demand for dollars curve slopes downwards because

• A) a higher exchange rate tends to make U.S. goods and services more expensive for foreigners, thereby generating a lower quantity of dollars in the foreign exchange market.
• B) a higher exchange rate tends to make U.S. goods and services cheaper for foreigners, thereby generating a lower quantity of dollars in the foreign exchange market.
• C) a lower exchange rate tends to decrease U.S. exports, which raises the price of foreign currency in the foreign exchange market.
• D) a lower exchange rate tends to increase U.S. imports, thereby raising the price of foreign currency in the foreign exchange market.

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Definitions:

Correlational Study

A type of research method that examines the relationship between two or more variables to determine whether they are associated or have a correlation, without implying causation.

Tentative Explanation

An initial, provisional hypothesis proposed to explain a phenomenon or observation, subject to further testing and investigation.

Medication-Withdrawal

Symptoms or conditions that arise as a consequence of reducing or stopping the intake of a drug on which the body has become dependent.

Symptom-Exacerbation

The worsening or intensification of symptoms.