How Will an Interest Rate Decrease in the United States

question 153

Multiple Choice

How will an interest rate decrease in the United States affect equilibrium in the foreign exchange market?

• A)The equilibrium exchange rate will increase,and the equilibrium quantity of dollars traded cannot be determined.
• B)The equilibrium exchange rate will decrease,and the equilibrium quantity of dollars traded cannot be determined.
• C)The equilibrium exchange rate cannot be determined,and the equilibrium quantity of dollars traded will increase.
• D)The equilibrium exchange rate will increase,and the equilibrium quantity of dollars traded will increase.

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Definitions:

Mesoderm

The central layer of the embryo from which the bones and muscles develop.

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the period from implantation until about the eighth week of pregnancy.

Umbilical Cord

A tube that connects the fetus to the placenta.

Phenotype

The actual form or constitution of a person as determined by heredity and environmental factors.