Which of the Following Is Most Likely to Cause the Dollar

question 23

Multiple Choice

Which of the following is most likely to cause the dollar to depreciate?

• A) higher domestic interest rates
• B) an increase in the rate of inflation abroad
• C) a shift by the Fed to a more expansionary monetary policy
• D) a decrease in foreign interest rates

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Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Edited and Typeset

The processes of revising and arranging text for publication, including correcting grammar, formatting, and styling the layout.

Marginal Cost

The price required to create one more unit of a particular good or service.

Profits

The excess of revenues over costs and expenses in a business or economic transaction.