If USInterest Rates Rise While Foreign Interest Rates Remain Unchanged

question 77

Multiple Choice

If U.S.interest rates rise while foreign interest rates remain unchanged,

• A)GDP will not change since the shift in aggregate supply cancels the positive effects on aggregate demand.
• B)the dollar will depreciate and thus reduce prices and output.
• C)foreign capital will be attracted to the United States and the dollar will appreciate.
• D)net exports will increase and the economy will expand.

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Definitions:

Dispute

A disagreement or conflict between parties that may involve a fight, battle, or a legal case.

Solution Imposition

Refers to enforcing a specific solution or decision on an issue, often without the consent of all parties involved.

Collective Agreement Operation

The process by which the terms and conditions of employment are negotiated and enforced between an employer and a representative group of employees.

Arbitration

The submission of parties in a dispute to having an arbitrator make a binding decision on their claims.