Which of the Following Would Decrease the Value of the Dollar

question 167

Multiple Choice

Which of the following would decrease the value of the dollar in the long run?

• A)a decrease in inflation in the United States relative to other countries
• B)a decrease in the demand for American goods relative to goods from other countries
• C)an increase in U.S.tariffs on foreign goods
• D)a decrease in the supply of dollars on the foreign exchange market

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Definitions:

Correlation Analysis

A statistical method used to evaluate the strength and direction of the linear relationship between two quantitative variables.

Scatter Diagram

A graphical representation used to visualize the relationship between two quantitative variables.

Regression Line

A line plotted through the scatter plot of data points that best expresses the relationship between those points, typically used in linear regression.

Coefficient Of Correlation

A numerical measure that indicates the strength and direction of a linear relationship between two variables.