Suppose the Current Exchange Rate Between the United States and Germany

question 20

Multiple Choice

Suppose the current exchange rate between the United States and Germany is 3.7 Euro per dollar while the equilibrium exchange rate is 4 Euro per dollar. It is likely that:

• A) the quantity of imports into the United States will decrease because of an appreciation of the dollar.
• B) the quantity of imports into the United States will increase because of a depreciation of the dollar.
• C) the quantity of imports into the United States will increase because of an appreciation of the dollar.
• D) the quantity of imports into the United States will decrease because of a depreciation of the dollar.

---

Definitions:

Neural Tube

An embryonic structure that develops into the brain and spinal cord.

Anencephaly

Defective development of the brain and absence of the bones of the cranium. Only a rudimentary brainstem and a trace of basal ganglia are present.

Hydrocephaly

A condition characterized by an abnormal accumulation of cerebrospinal fluid within the ventricles of the brain, leading to increased pressure.

Ventricular Enlargement

This term refers to the expansion or increase in size of the ventricles in the brain, which can be indicative of disease or damage.