If Real Interest Rates in the United States Are Higher

question 64

Multiple Choice

If real interest rates in the United States are higher than those of our trading partners, what will tend to happen to the foreign exchange value of the dollar and the U.S. current account deficit or surplus?

• A) The dollar will depreciate; the current account will move toward a deficit.
• B) The dollar will depreciate; the current account will move toward a surplus.
• C) The dollar will appreciate; the current account will move toward a deficit.
• D) The dollar will appreciate; the current account will move toward a surplus.

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Definitions:

Viral RNA

Ribonucleic acid molecules encoded by viruses that carry genetic information for the replication and function of the virus within host cells.

Genetic Material

Molecules within cells that carry genetic information, primarily DNA or RNA, necessary for heredity and biological functions.

Thermus Aquaticus

A bacterium found in hot springs, known for its heat-tolerant enzyme used in PCR (Polymerase Chain Reaction) technology.

Pathogenic

Pertaining to an organism or substance that causes disease.