If the USInterest Rate Falls Relative to the British Interest Rate

question 1

Multiple Choice

If the U.S.interest rate falls relative to the British interest rate,

• A) the U.S.demand for pounds will not change
• B) the U.S.demand for pounds will decrease
• C) the U.S.demand for pounds will increase
• D) there will be a rightward movement along the U.S.demand curve for pounds
• E) there will be a leftward movement along the U.S.demand curve for pounds

---

Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Attractiveness

The attribute or quality of being appealing or pleasing, either physically or in terms of personality.

Romantic Popularity

The extent to which an individual is considered desirable or favorable as a partner in romantic contexts.

Commitment

The state or quality of being dedicated to a cause, activity, or goal, often reflected in one's actions and intentions.