Which of the Following Events Will Tend to Increase Net

question 94

Multiple Choice

Which of the following events will tend to increase net exports of the United States?

• A)an appreciation of the dollar
• B)an increase in the U.S.real interest rate
• C)a fall in the real interest rate in several western European countries
• D)none of the above

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another.

Shipping Charge

A fee imposed by a carrier for the handling and transportation of goods from one location to another.

U.S. Dollars

The official currency of the United States, used as a standard unit of money and backed by the federal government.

Brazilian Real

The official currency of Brazil, symbolized as R$ and subdivided into 100 centavos.