Under a Flexible Exchange Rate System,if the Rate of Inflation

question 64

Multiple Choice

Under a flexible exchange rate system,if the rate of inflation in the United States exceeds that in Japan

• A) the Japanese yen will appreciate relative to the dollar.
• B) the dollar will be devalued.
• C) gold will flow from Japan to the United States.
• D) the U.S. demand for yen will shift to the left.
• E) the exchange rate will remain the same, but exports and imports will fall.

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Genetic Predisposition

A hereditary likelihood of developing certain diseases or conditions based on one's genes.

Proximity

The physical or psychological closeness between people, which can influence attraction and interpersonal relations.

Severity

The degree of intensity, seriousness, or harshness of a situation, condition, or disease.

Sympathetic Division

A part of the autonomic nervous system responsible for the body's 'fight or flight' response, mobilizing energy and resources during times of stress or emergency.