Which of the Following Is Most Likely to Happen as the Result

question 26

Multiple Choice

Which of the following is most likely to happen as the result of lower real interest rates in the United States?

• A) the dollar will depreciate on the foreign exchange market and imports will grow relative to exports.
• B) the dollar will appreciate on the foreign exchange market, and exports will grow relative to imports.
• C) the dollar will depreciate on the foreign exchange market, and exports will grow relative to imports.
• D) the dollar will appreciate on the foreign exchange market, and imports will grow relative to exports.

---

Definitions:

Merchant

A person or company engaged in the business of selling goods or services.

Agent

An individual or entity authorized to act on behalf of another (known as the principal) in dealings with third parties.

Infant

An infant refers to a very young child or baby, often defined legally as a person under a certain age, typically under one year old, but the term can extend to younger children in different contexts.

Contract

An enforceable arrangement under law, involving multiple parties.