If Speculators Bid Up the Value of the U

question 39

Multiple Choice

If speculators bid up the value of the U.S.dollar in the market for foreign exchange,then

• A)U.S.goods become more expensive relative to foreign goods so aggregate demand shifts right.
• B)U.S.goods become less expensive relative to foreign goods so aggregate demand shifts right.
• C)U.S.goods become more expensive relative to foreign goods so aggregate demand shifts left.
• D)U.S.goods become less expensive relative to foreign goods so aggregate demand shifts left.

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Definitions:

Payments

Definition: The act of transferring money to settle a debt or account balance.

Compounded Annually

This refers to the process of applying interest to an initial amount and the accumulated interest from previous periods once every year.

Economic Values

The worth of goods, services, or property in terms of their ability to generate income or wealth.

Annuities

Financial products that provide a series of payments over time, often used for retirement income.