Assume That European Interest Rates Fall as a Result of Decreased

question 43

Multiple Choice

Assume that European interest rates fall as a result of decreased deficit spending by the governments of the European Union.We would expect all of the following, except:

• A)a depreciation of the euro with respect to the U.S.dollar.
• B)increased European demand for American government securities.
• C)a higher level of U.S.imports from Europe.
• D)higher U.S.net exports to Europe.
• E)higher French exports to the United States.

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Definitions:

Inhibitory Role

The function of certain processes or substances in slowing down or stopping the activity of neural or biochemical pathways.

GABA

GABA, or Gamma-Aminobutyric Acid, is a neurotransmitter in the brain that plays a key role in regulating neuronal excitability and is involved in inducing relaxation and sleep.

Serotonin

A neurotransmitter in the brain that plays a critical role in mood regulation, appetite, sleep, and other bodily functions.

Dopamine

A neurotransmitter involved in reward, motivation, memory, attention, and even regulating body movements.