Refer to the Diagram, Where D and S Are the United

question 142

Multiple Choice

Refer to the diagram, where D and S are the United States' demand for and supply of Swiss francs. At the equilibrium exchange rate, E, the United States' balance of payments is in equilibrium. Under a system of fixed exchange rates, the shift in demand from D to D' will require the United States to

• A)increase its foreign exchange reserves.
• B)increase the domestic money supply of dollars.
• C)reduce its foreign exchange reserves.
• D)appreciate the Swiss franc.

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Definitions:

Athena Parthenos

A monumental statue of the goddess Athena housed in the Parthenon in Athens, crafted by Phidias in the 5th century BCE, symbolizing wisdom, warfare, and crafts, and renowned for its gold and ivory construction.

Hippodamian Planning

A grid-like urban planning method attributed to the ancient Greek architect Hippodamus, emphasizing order and efficiency.

Priene

An ancient Greek city located in modern-day Turkey, known for its well-preserved ruins and as an example of classical Greek urban planning.

Triglyphs

Architectural elements used in the frieze of Doric order temples, consisting of three vertical grooves which alternate with metopes.