Which of the Following Is Likely to Result in Long-Run

question 151

Multiple Choice

Which of the following is likely to result in long-run depreciation of the U.S.dollar relative to the euro?

• A) Relatively low interest rates in the United States
• B) Relatively high labor productivity in the United States
• C) Tariffs levied by the United States on steel imports from Europe
• D) Stronger American preferences for goods produced in Europe

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Definitions:

Contribute

To give or provide something, often in the context of adding to a group effort or collective resource.

Benefit

The advantage or positive outcome gained from something.

Nash Equilibrium

A solution concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Strategy

A plan of action designed to achieve a long-term or overall goal.