Which of the Following Would Cause an Increase in the Demand

question 150

Multiple Choice

Which of the following would cause an increase in the demand for U.S.dollars?

• A)An interest rate cut in the United States
• B)An interest rate cut in Europe
• C)An interest rate increase in Europe
• D)A recession in Europe

---

Definitions:

Trade Restrictions

Regulations and policies that governments enact to control the free trade and exchange of goods and services across borders.

Import Quota

A restriction enforced by the government on the volume or price of merchandise that may be imported into a country.

Tariff

A tariff is a tax imposed by a government on imported or exported goods to regulate trade, often to protect domestic industries.

Free Trade

An economic policy that allows imports and exports between countries with minimal governmental restrictions or tariffs.