Under a Flexible Exchange Rate System, Which of the Following

question 56

Multiple Choice

Under a flexible exchange rate system, which of the following will be most likely to cause an appreciation in the exchange rate of the dollar relative to the English pound?

• A) an economic boom in England, inducing English consumers to buy more American-made automobiles, trucks, and computer products
• B) higher real interest rates in England
• C) inflation in the United States while prices are stable in England
• D) attractive investment opportunities in England, inducing U.S. investors to buy stock in English firms

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Definitions:

Conflict Theory

An outlook on sociology that sees social existence as a contest, concentrating on how resources, authority, and disparity are allocated.

Profit-Generating

Describes activities or operations that result in financial gain, contributing positively to the overall financial health of a business or entity.

Socialization

The manner in which persons absorb and integrate the customs, principles, conduct, and social abilities necessary for their society.

Mass Media

Mass media encompasses various forms of communication technologies, such as television, radio, newspapers, and the internet, that reach a large audience simultaneously.