In the Early 2000s, the Dollar Depreciated Relative to Other

question 39

Multiple Choice

In the early 2000s, the dollar depreciated relative to other currencies. Foreign policy makers claimed that the U.S. government must curtail its spending and encourage its citizens to save more. What does the U.S. saving rate have to do with the value of the dollar?

• A)Nothing; those who are giving this advice do not understand economics.
• B)More savings would mean more investment, and more investment would increase the value of the dollar.
• C)More domestic saving would increase the interest rate, attracting more funds to the United States and thereby raising the value of the dollar.
• D)More U.S. savings would reduce the consumption of foreign goods, reducing the trade deficit.

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Definitions:

Performance Goals

Objectives aimed at demonstrating competence or achieving a specific standard of excellence in a task.

Approach Goals

Objectives that focus on achieving a positive outcome or moving towards a desirable object or event.

Performance Goals

Objectives aimed at demonstrating competence or achieving a specific standard of excellence in a task or activity.

Performance Goal

Objectives centered around achieving a specific standard of proficiency on a task, usually within a specified time.