At a Given Real Exchange Rate,which of the Following,by Itself,would

question 158

Multiple Choice

At a given real exchange rate,which of the following,by itself,would increase the supply of dollars in the market for foreign-currency exchange?

• A)foreign citizens buy more U.S.bonds
• B)U.S.citizens buy more foreign bonds
• C)foreign citizens buy more U.S.goods
• D)U.S.citizens buy more foreign goods

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination by supply and demand.

Coconuts

Tropical fruits with a hard outer shell and milky interior, known for their versatility in food products and industrial uses.

Fish

Aquatic animals that are typically cold-blooded, covered with scales, and equipped with fins, used as a significant food source for humans.

Comparative Advantage

An economic principle that refers to the ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade.