An Increase in Foreign Real Incomes May Be Graphically Represented

question 4

Multiple Choice

An increase in foreign real incomes may be graphically represented as a

• A)slide upward on the demand curve for dollars in the foreign exchange market.
• B)slide upward or downward on the demand curve for dollars in the foreign exchange market.
• C)shift upward of the demand curve for dollars in the foreign exchange market.
• D)rightward shift of the demand curve for dollars in the foreign exchange market.

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Definitions:

Government Subsidy

Financial assistance provided by the government to individuals, organizations, or industries to support activities beneficial to the public or promote certain economic outcomes.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to produce and sell.

Government Subsidy

Financial assistance provided by the government to support businesses, individuals, or economic sectors.

Demand Curve

A graph that shows the relationship between the price of a product and the quantity of the product demanded.