Other Things Being Constant,which of the Following Will Most Likely

question 105

Multiple Choice

Other things being constant,which of the following will most likely cause the dollar to appreciate on the exchange rate market?

• A)expansionary domestic monetary policy
• B)reduced inflation abroad
• C)higher interest rates abroad
• D)higher domestic interest rates

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Definitions:

Domination

The exercise of control or influence over someone or something, or the state of being dominant.

Pseudo-Foreign Corporation

A business entity that operates in a country different from its country of incorporation but is treated as a domestic company for legal or tax purposes.

Foreign Corporation

A corporation that is incorporated in one jurisdiction but is doing business and registered to operate in another jurisdiction.

Thin Capitalization

A financial situation in which a company has a high level of debt compared to its equity.