If US Speculators Gained Greater Confidence in Foreign Economies So That

question 167

Multiple Choice

If U.S. speculators gained greater confidence in foreign economies so that they wanted to move more of their wealth into foreign countries, the dollar would

• A)appreciate which would cause aggregate demand to shift right.
• B)appreciate which would cause aggregate demand to shift left.
• C)depreciate which would cause aggregate demand to shift right.
• D)depreciate which would cause aggregate demand to shift left.

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Definitions:

Transaction Analysis

The process of studying a transaction to determine its economic effect on the business in terms of the accounting equation.

Accounting Equation

The foundational principle of double-entry bookkeeping, stating that assets equal liabilities plus shareholders' equity.

Components

Elements or parts that combine to form a larger product or system.

Net Profit Margin Ratio

A profitability metric that shows the percentage of revenue that remains as net income after all expenses have been deducted.