If Speculators Lost Confidence in Foreign Economies and So Wanted

question 47

Multiple Choice

If speculators lost confidence in foreign economies and so wanted to buy more U.S.bonds

• A)the dollar would appreciate which would cause aggregate demand to shift right.
• B)the dollar would appreciate which would cause aggregate demand to shift left.
• C)the dollar would depreciate which would cause aggregate demand to shift right.
• D)the dollar would depreciate which would cause aggregate demand to shift left.

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Definitions:

Selling Goods

The act of transferring physical products or merchandise to a buyer in exchange for money or other compensation.

Cookie Jar Reserves

An accounting practice where companies store reserves in good years to smooth out earnings by releasing them in bad years, which can be seen as deceptive.

GAAP

The standard set of guidelines for financial accounting that is widely accepted and used within a certain jurisdiction, known as Generally Accepted Accounting Principles.

Nonrefundable Up-front

Payment made in advance that cannot be reclaimed, typically associated with the initial stages of a contract or agreement.