Which of the Following Statements Is Part of an Accurate

question 17

Multiple Choice

Which of the following statements is part of an accurate explanation of how an increase in the value of the dollar could lead to a reduction in GDP in the United States?

• A) As the value of the dollar climbs, so do net exports.
• B) Higher net exports produce lower interest rates by movement along an LM curve.
• C) Movement along an LM curve toward lower interest rates corresponds to lower levels of GDP.
• D) All of the above are accurate parts of the explanation.
• E) None of the above can be an accurate part of the explanation, because the statement is false.

---

Definitions:

Civil Service Reform Act

Legislation intended to improve and regulate the civil service of the United States by promoting merit-based appointment and ensuring job security for civil servants.

Office of Personnel Management (OPM)

A U.S. federal agency that manages the civil service of the federal government, overseeing human resources policy, personnel management, and health insurance policies for federal employees.

Political Appointees

Individuals who are appointed to certain government positions as a result of their political affiliation or support, rather than through a merit-based system.

Interstate Commerce Commission (ICC)

A former independent agency of the U.S. government, established to regulate the railroad industry and later expanded to oversee other modes of transportation.