The Demand for Dollars Is Downward Sloping Because When Dollar

question 4

Multiple Choice

The demand for dollars is downward sloping because when dollar value rises,

• A)Foreigners demand more of US goods and services
• B)Foreigners demand less of US goods and services
• C)Foreigners demand more dollars
• D)It does not depend on the dollar value

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Definitions:

Demand

How much of a service or good that individuals are ready and financially capable of buying at several price points over a certain period.

Loanable Funds

The money available for borrowing, which is determined by the savings rate, income levels, and policies affecting interest rates.

Interest Rates

The cost of borrowing money, expressed as a percentage, which lenders charge borrowers for using their money for a period of time.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, meant to protect consumers from conditions that could make commodities prohibitively expensive.