An Increase in Which of the Following Factors (From the Perspective

question 3

Multiple Choice

An increase in which of the following factors (from the perspective of the domestic country) would cause a depreciation of the domestic currency in the short run?

• A) foreign interest rate
• B) relative price level
• C) relative export demand
• D) all of the above

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Definitions:

Floodplain

Land that is level or almost level, located next to a river or stream, which undergoes infrequent or regular floods.

Meander

A winding curve or bend in a river, which occurs as the river erodes the landscape in sinuous patterns.

Flood

The result of water overfilling a channel and spilling out onto the floodplain or other adjacent land.

Hydrographs

Charts that show the flow rate of water over time at a specific point in a river or stream.