Which of the Following, Ceteris Paribus, Will Cause the Dollar

question 32

Multiple Choice

Which of the following, ceteris paribus, will cause the dollar to appreciate?

• A)a decrease in foreign income
• B)an increase in foreign inflation
• C)an increase in domestic income
• D)an increase in domestic inflation

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Definitions:

Homeostasis

The process by which biological systems maintain a stable internal environment despite changes in external conditions.

Drive

An innate, biologically determined urge to attain a goal or satisfy a need.

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later, often greater reward.

Delay Gratification

The capacity to withstand the urge for an instant gratification in favor of a future reward.