Which of the Following Would Cause the Supply of U

question 92

Multiple Choice

Which of the following would cause the supply of U.S. dollars in the forex market to decrease?

• A) Foreign interest rates are low relative to U.S. interest rates.
• B) Investors' confidence in foreign economies increases.
• C) U.S. consumers prefer foreign goods to U.S. goods.
• D) All of these would increase the supply of U.S. dollars in the forex market.

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Definitions:

Self-fulfilling Prophecy

A belief or expectation that an individual or group holds about a future event that manifests because the individual or group acts in ways that support the belief or expectation.

Theory X

A management assumption that employees are inherently lazy, require close supervision and control, and are motivated primarily by financial incentives.

Theory Y

A management approach based on the belief that employees are intrinsically motivated and will seek out responsibility and development if given the opportunity.

Self-fulfilling Prophecies

Situations where an initially false expectation leads to its own confirmation because the expectation influences behavior to make it true.