Suppose There Is an Increased Demand from Foreign Countries for Iowa

question 69

Multiple Choice

Suppose there is an increased demand from foreign countries for Iowa pork. What happens to the U.S. dollar exchange rate in a flexible foreign currency market?

• A) The demand and supply of U.S. dollars increase, leading to an increase in the quantity of dollars traded and an indeterminate effect on the exchange rate.
• B) The supply of U.S. dollars increases, causing the U.S. dollar exchange rate to fall.
• C) The demand for U.S. dollars increases and the supply decreases, leading to an increase in the U.S. dollar exchange rate.
• D) The demand for U.S. dollars increases, causing the U.S. dollar exchange rate to rise.

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Definitions:

Horizontal Integration

A business strategy where a company acquires or merges with other companies at the same level of production in the same or different industries to increase market share and reduce competition.

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.

Waking Hours

describes the period of the day when an individual is awake and engaged in activities, excluding sleep.

Mass Media

Various mediums of communication, such as television, newspapers, radio, and the internet, that reach large audiences and influence public opinion and information dissemination.