In the Early 2000s, the Dollar Depreciated Relative to Other

question 39

Multiple Choice

In the early 2000s, the dollar depreciated relative to other currencies. Foreign policy makers claimed that the U.S. government must curtail its spending and encourage its citizens to save more. What does the U.S. saving rate have to do with the value of the dollar?

• A)Nothing; those who are giving this advice do not understand economics.
• B)More savings would mean more investment, and more investment would increase the value of the dollar.
• C)More domestic saving would increase the interest rate, attracting more funds to the United States and thereby raising the value of the dollar.
• D)More U.S. savings would reduce the consumption of foreign goods, reducing the trade deficit.

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Definitions:

Posterior Tibial Artery

A major artery of the lower leg, supplying blood to the posterior compartment of the leg and plantar surface of the foot.

Gonadal Artery

An artery that supplies blood to the gonads; the testicular artery in males and the ovarian artery in females, crucial for reproductive organ function.

Posterior Tibial Artery

An artery located behind the tibia bone in the lower leg, it supplies blood to the posterior compartment of the leg and plantar surface of the foot.

External Iliac Artery

A major artery that supplies blood to the lower limbs, originating from the common iliac artery.