Under a Floating Exchange-Rate System,if American Exports Decrease and American

question 52

Multiple Choice

Under a floating exchange-rate system,if American exports decrease and American imports rise,the value of the dollar will:

• A) Appreciate
• B) Depreciate
• C) Be officially revalued
• D) Be officially devalued

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Definitions:

Decade

A span lasting a decade.

Roosevelt Administration

The period of U.S. governance under President Franklin D. Roosevelt from 1933 to 1945, known for the New Deal programs.

Federal Reserve Board

The governing body of the Federal Reserve System, overseeing the U.S. central banking system and responsible for regulating the nation's monetary policy.

Recession 1937-38

A sharp economic downturn that occurred during the late 1930s in the United States, part of the larger Great Depression era, marked by high unemployment and deflation.