When There Is a Shortage of Dollars in the Foreign

question 48

Multiple Choice

When there is a shortage of dollars in the foreign exchange market, the

• A)supply curve of dollars shifts rightward to restore the equilibrium.
• B)demand curve for dollars shifts leftward to restore the equilibrium.
• C)supply curve of dollars shifts leftward to restore the equilibrium.
• D)U.S. exchange rate will appreciate.
• E)U.S. exchange rate will depreciate.

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Definitions:

Mechanized Tomato Pickers

Automated or machine-operated equipment used in agriculture for harvesting tomatoes, enhancing efficiency and reducing the need for manual labor.

Wage Rate

The amount of money paid to an employee per unit of time or per task performed.

Important Resource

A critical input or asset essential for the production process or for the functioning of an organization or economy.

Patent Application

The process by which an inventor or a legal representative seeks exclusive rights for an invention from the government.