A Factor Helping Determine the Demand for U

question 101

Multiple Choice

A factor helping determine the demand for U.S. dollars in the foreign exchange market is

• A) consumer and investment demand.
• B) both the demand for U.S. exports and U.S. demand for imports.
• C) the ratio of U.S. exports to imports.
• D) world demand for U.S. exports.

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Definitions:

Marginal Rate

refers to the rate at which one variable changes as another variable changes slightly, commonly used in the context of taxes or interest.

Indifference Schedule

A representation of combinations of two goods between which a consumer is indifferent because they provide the same level of utility.

Substitution

The act of replacing one item with another, often referring to the economic principle where consumers switch between similar goods in response to changes in price or income.

Indifference Curve

A graph representing combinations of two goods between which a consumer is indifferent, showing preferences and trade-offs.