Suppose the Real Exchange Rate Is Such That the Market

question 35

Multiple Choice

Suppose the real exchange rate is such that the market for foreign-currency exchange has a surplus.This surplus will lead to

• A)an appreciation of the dollar,an increase in U.S.net exports,and so an increase in the quantity of dollars demanded in the foreign exchange market.
• B)an appreciation of the dollar,a decrease in U.S.net exports,and so a decrease in the quantity of dollars demanded in the foreign exchange market.
• C)a depreciation of the dollar,an increase in U.S.net exports,and so an increase in the quantity of dollars demanded in the foreign exchange market.
• D)a depreciation of the dollar,a decrease in U.S.net exports,and so a decrease in the quantity of dollars demanded in the foreign exchange market.

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Definitions:

Leadership

The act or ability of leading a group towards achieving a common goal, often involving inspiring and guiding others.

Low LPC Leader

A leadership style characterized by a primary focus on completing tasks and obtaining results over building relationships, according to the Least Preferred Coworker (LPC) theory.

Participative Leadership

A leadership style wherein the leader includes team members in the decision-making process, ensuring their opinions and suggestions are considered.

Supportive Leadership

A leadership style that focuses on providing encouragement, resources, and assistance to employees.