When Americans or Foreigners Expect the Return on Dollar Assets

question 73

Multiple Choice

When Americans or foreigners expect the return on dollar assets to be high relative to the return on foreign assets,there is a ________ demand for dollar assets and a correspondingly ________ demand for foreign assets.

• A)higher;higher
• B)higher;lower
• C)lower;higher
• D)lower;lower

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Definitions:

Tires

Rubber-based, circular components designed to cover the wheels of vehicles, providing traction and absorbing shock.

Product Cost

The total amount of expenses incurred to produce and deliver a product to the market including materials, labor, and overhead costs.

Period Cost

Costs that are not directly tied to the production of goods and services, such as sales and administration expenses, and are expensed in the period incurred.

Cupcake Mix

A pre-made mixture containing some or all of the ingredients needed to bake cupcakes, requiring only additional wet ingredients or none at all.