If the Expected Future Exchange Rate Decreases, Then the Supply

question 39

Multiple Choice

If the expected future exchange rate decreases, then the supply of dollars ________ and the demand for dollars ________.

• A) increases; decreases
• B) decreases; increases
• C) decreases; decreases
• D) does not change; does not change
• E) increases; increases

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Definitions:

Sensory

Pertaining to the senses or sensation, involving the reception and transmission of stimuli to the central nervous system.

Autonomic

Relating to the autonomic nervous system, which controls involuntary bodily functions such as heartbeat and digestion.

Somnambulism

Also known as sleepwalking, a disorder that involves walking or performing other complex behaviors while asleep.

Hypnosis

A trance-like state in which a person has heightened focus and concentration, often used for therapeutic purposes.