All Else Being Equal,a Decrease in U

question 81

Multiple Choice

All else being equal,a decrease in U.S.interest rates relative to foreign interest rates causes the demand for dollars to ________ and the dollar will ________ relative to foreign currencies.

• A) increase; appreciate
• B) increase; depreciate
• C) decrease; appreciate
• D) decrease; depreciate

---

Definitions:

Iconic Memory

A type of visual sensory memory that preserves an image of a visual stimulus for a brief period after the stimulus is removed.

Mental Visualization

The process of creating or re-creating images, scenarios, or elements within the mind without direct input from the external senses.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing and manipulation.

Explicit Memory

Retention of facts and experiences that we can consciously know and “declare.” (Also called declarative memory.)