In a Floating Exchange Rate System,when National Savings Falls Then

question 55

Multiple Choice

In a floating exchange rate system,when national savings falls then the equilibrium exchange rate

• A)falls and the trade balance falls.
• B)falls and the trade balance rises.
• C)rises and the trade balance falls.
• D)rises and the trade balance rises.

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Definitions:

High Correlation

Indicates a strong relationship between two variables, where changes in one are closely associated with changes in the other.

Independent Variable

An independent variable is a factor in research that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Dependent Variable

In research, the variable that is measured or observed to assess the effect of the independent variable.

Causation

The relationship between cause and effect where one event (the cause) makes another event happen (the effect).