Which of the Following Could Explain a Decrease in the U.S

question 158

Multiple Choice

Which of the following could explain a decrease in the U.S. real exchange rate?

• A)the U.S. government budget deficit rises
• B)the U.S. impose import quotas
• C)the default risk of U.S. assets rise
• D)All of the above are correct.

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Definitions:

Per-annum Rate

Another term for annual rate, indicating the interest rate or growth rate over a single year.

Bank Loan

Money lent by a bank to a customer, usually with interest, that is expected to be repaid within a certain period.

Outstanding Principal

The remaining amount of money borrowed that has not yet been repaid.

Accrued

Accumulated over time but not yet paid or received, typically referring to interest or income.