Which of the Following Would Tend to Shift the Supply

question 277

Multiple Choice

Which of the following would tend to shift the supply of dollars in the market for foreign-currency exchange in the open-economy macroeconomic model to the right?

• A)The exchange rate rises.
• B)The exchange rate falls.
• C)The expected rate of return on U.S. assets rises.
• D)The expected rate of return on U.S. assets falls.

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Definitions:

Cash Payment

A transaction in which money is paid immediately at the time of purchase, not on credit.

Journal Entry

A record in accounting that documents a business transaction, including the accounts and amounts affected.

Prepaid Insurance

The cost of insurance premiums that have been paid in advance for future coverage, recorded as an asset on the balance sheet.

Accounts Receivable

Receivables from customers for goods or services that have been used or delivered, but remain unpaid.