An Unexpected Increase Occurs in the Demand for U

question 9

Multiple Choice

An unexpected increase occurs in the demand for U.S. dollars in Italy. If the Fed wants the foreign currency price of the U.S. dollar to not change, it must intervene in the foreign exchange market so that

• A) the supply of U.S. dollars decreases.
• B) the U.S. demand for Euros falls.
• C) the supply of U.S. dollars increases.
• D) Italian imports are reduced.
• E) the Italian currency is devalued.

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Definitions:

Pleura

The thin membrane that covers the lungs and lines the chest cavity, facilitating smooth respiratory movements.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place.

Pharynx

A part of the neck and throat situated behind the mouth and nasal cavity, crucial for respiratory and digestive pathways.

Respiratory Rate

The number of breaths taken per minute, a vital sign used in health assessments to gauge respiratory function and general health status.