Other Things Remaining the Same, If the Expected Future Exchange

question 244

Multiple Choice

Other things remaining the same, if the expected future exchange rate rises, the demand curve for U.S. dollars shifts ________ and the supply curve of U.S. dollars shifts ________.

• A) rightward; rightward
• B) rightward; leftward
• C) leftward; rightward
• D) leftward; leftward

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Definitions:

Conservative Economist

An economist whose work typically emphasizes free market policies, limited government intervention, and fiscal conservatism as means to achieve economic growth and stability.

Truman Doctrine

President Harry S. Truman’s program announced in 1947 of aid to European countries—particularly Greece and Turkey—threatened by communism.

Cold War

A period of geopolitical tension between the Soviet Union and the United States from the late 1940s to 1991, marked by espionage, political rivalry, and the threat of nuclear warfare.

Freedom Train

A seven-car exhibit train that toured the United States from 1947 to 1949 to promote American history and ideals.