The Following Figure Depicts the Demand for Chinese Yuan in the Foreign

question 103

Multiple Choice

The following figure depicts the demand for Chinese yuan in the foreign currency exchange market. Use this figure to answer the following questions.
-If the interest rates in China rise relative to interest rates in the United States,the demand curve in the figure above

• A) will not shift because interest rates are not related to exchange rates.
• B) will not shift because interest rates only affect the supply curve.
• C) can either increase from D₁ to D₂ or decrease from D₁ to D_3.
• D) will increase from D₁ to D_2.
• E) will decrease from D₁ to D_3.

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Definitions:

Under-extension

A cognitive error typical in early child language development where a child inappropriately restricts the use of a word to only one object or situation.

Telegraphic Speech

A stage in language acquisition in children where speech is abrupt and consists mainly of content words, resembling the structure of telegraph messages.

Fast Mapping

The rapid mental assignment of meaning to a new word by a child, often after a single exposure to the word in a meaningful context.

Overextension

In language development, the application of a word in a broader context than is appropriate, showing a child's developing linguistic capability.