Ceteris Paribus, If Exchange Rates Are Flexible and U

question 21

Multiple Choice

Ceteris paribus, if exchange rates are flexible and U.S consumers buy more foreign goods, the

• A) dollar will depreciate.
• B) supply of U.S. dollars in foreign exchange markets will decrease.
• C) dollar will appreciate.
• D) demand for U.S. dollars in foreign exchange markets will decrease.

---

Definitions:

Poverty

A state of financial instability where individuals or families lack sufficient income to meet basic needs such as food, shelter, and healthcare.

Income Disparities

The unequal distribution of income among different groups in society.

Wealth Disparities

Refers to the significant differences in wealth (assets and income) among different groups, often analyzed by race, ethnicity, or socioeconomic status.

Financial Institutions

Organizations that provide financial services, such as banks, credit unions, stockbrokers, and insurance companies.