If the Exchange Rate Is Above the Equilibrium Exchange Rate

question 7

Multiple Choice

If the exchange rate is above the equilibrium exchange rate in the foreign exchange market,

• A)a shortage exists, and the exchange rate will rise.
• B)a shortage exists, and the exchange rate will fall.
• C)a surplus exists, and the exchange rate will fall.
• D)exports are cheap, and the demand curve for Canadian dollars will shift rightward.
• E)a surplus exists, and the exchange rate will rise.

Grasp Marx and Weber’s concepts about social classes and inequalities.

Recognize the theoretical underpinnings of social stratification theories, including functionalist and conflict perspectives.

Understand the concept and calculation of the money multiplier and its impact on the money supply.

Learn how the Federal Reserve's actions, such as open market operations, influence the money supply.

---

Definitions:

Avoidance-avoidance

A psychological conflict involving a choice between two undesirable outcomes or situations.

Approach-approach

A conflict situation in which an individual must choose between two desirable outcomes.

Double approach-avoidance

A psychological conflict involving two goals or situations, each possessing both attractive (approach) and repulsive (avoidance) aspects, making decision-making more complex.

Double approach-avoidance

A psychological conflict that involves making a decision between two options, both of which have positive and negative elements to consider.