If the USinterest Rate Falls at the Same Time There Is an Is

question 13

Multiple Choice

If the U.S.interest rate falls at the same time there is an increase in British real GDP,which of the following would happen in the market for British pounds?

• A) A rightward shift of the demand for pounds curve,a rightward shift of the supply of pounds curve,a larger number of pounds traded,and an indeterminate effect on the dollars per pound exchange rate.
• B) A rightward shift of the demand for pounds curve,a rightward shift of the supply of pounds curve,a larger number of pounds traded,and an increase in the dollars per pound exchange rate.
• C) A rightward shift of the demand for pounds curve,a rightward shift of the supply of pounds curve,a larger number of pounds traded,and a decrease in the dollars per pound exchange rate.
• D) A leftward shift of the demand for pounds curve,a rightward shift of the supply of pounds curve,a larger number of pounds traded,and an indeterminate effect on the dollars per pound exchange rate.
• E) Cannot be determined without additional information.

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Definitions:

Higher Levels

relates to positions, status, or stages that are advanced or superior in rank, quality, or degree in any hierarchical or structured context.

Performance

The execution or accomplishment of work, actions, tasks, or functions measured against preset known standards of accuracy, completeness, cost, and speed.

Objectives

Specific, measurable goals set by an individual or organization to achieve desired outcomes.

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.