When the U.S.dollar Appreciates

question 36

Multiple Choice

When the U.S.dollar appreciates,

• A)U.S.exports rise.
• B)U.S.imports decline.
• C)aggregate demand shifts inward.
• D)aggregate demand shifts outward.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Exercise Price

The price at which the holder of an option can buy (call) or sell (put) the underlying security.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.