If for Some Reason Americans Wished to Purchase More Foreign

question 12

Multiple Choice

If for some reason Americans wished to purchase more foreign assets, then other things the same

• A) both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall.
• B) both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise.
• C) the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall.
• D) the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.

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Definitions:

Farm Income

The earnings obtained from agricultural activities and operations, including crop sales, livestock sales, and government subsidies.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at a given price.

Migration

The movement of individuals or groups from one location to another, often for reasons such as employment, education, or economic opportunities.