Under a System of Floating Exchange Rates, Other Things Equal

question 5

Multiple Choice

Under a system of floating exchange rates, other things equal, a U.S.trade deficit with Japan will cause

• A) a flow of gold from the United States to Japan.
• B) the U.S. government to ration yen to U.S. importers.
• C) an increase in the dollar price of yen.
• D) a decrease in the dollar price of yen.

---

Definitions:

Court Action

A legal proceeding in which a plaintiff brings a lawsuit against a defendant in court, seeking a legal remedy.

Judicial Review

The process by which a court examines the actions of the executive and legislative branches to ensure they comply with the constitution or other guiding legal principles.

Prerogative Writs

Special orders issued by a higher court to a lower court or public authority to perform or refrain from doing a specific act.

Historical

Pertaining to or dealing with events or conditions of the past.