When People Expect That the Future Exchange Rate Will Be

question 106

Multiple Choice

When people expect that the future exchange rate will be lower, they ________ the supply of dollars and the current exchange rate ________.

• A) increase; rises
• B) increase; falls
• C) decrease; rises
• D) decrease; falls
• E) do not change; rises

---

Definitions:

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in complex behaviors including planning, and heavily implicated in human personality.

Temporal Lobe

A region of the cerebral cortex located beneath the temples, responsible for processing auditory information and encoding memory, as well as being involved in understanding language and emotional response.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body as well as for navigation and understanding numerical information.

Migratory Behavior

The seasonal movement of animals from one region to another for breeding, feeding, or other reasons.