In a Setting of Flexible Exchange Rates, Suppose That the U.S

question 33

Multiple Choice

In a setting of flexible exchange rates, suppose that the U.S. citizens decrease their import purchases from the United Kingdom at the same time that British citizens increase their purchases of stocks and bonds in the United States. The first action (the U.S. imports) by itself would lead to __________ of the dollar against the pound; the second action by itself would __________ of the dollar against the pound.

• A) an appreciation; lead to a depreciation
• B) an appreciation; also lead to an appreciation
• C) a depreciation; also lead to a depreciation
• D) a depreciation; lead to an appreciation

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Definitions:

High Fever

An elevated body temperature significantly above the normal range, often indicative of infection or other medical conditions.

Hypokalemia

A medical condition characterized by lower than normal levels of potassium in the blood.

Furosemide

A diuretic medication used to treat edema (excess fluid retention) and hypertension by increasing urine production.

Hyponatremia

A condition where there is an abnormally low level of sodium in the blood.