Which of the Following Occurrences Would NOT Shift the Demand

question 137

Multiple Choice

Which of the following occurrences would NOT shift the demand curve for U.S. dollars in the foreign exchange market?

• A) an increase in the U.S. exchange rate
• B) an increase in U.S. interest rates
• C) an increase in the expected future U.S. exchange rate
• D) an increase in foreign interest rates

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Definitions:

Differential Cost

The amount of increase or decrease in cost expected from a particular course of action compared with an alternative.

Variable Costs

Costs that vary in proportion to changes in the activity base.

Differential Cost

The difference in total cost that will result from selecting one alternative over another in decision-making situations.

Intermediate Product

A product that requires further processing before it is considered a finished good ready for sale to consumers.