Other Things the Same, If the U

question 62

Multiple Choice

Other things the same, if the U.S. price level falls, then

• A)the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate rises.
• B)the supply of dollars in the market for foreign-currency exchange increases, so the exchange rate falls.
• C)the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate rises.
• D)the supply of dollars in the market for foreign-currency exchange decreases, so the exchange rate falls.

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Definitions:

Bystander Effect

A phenomenon where individuals are less likely to offer help to a victim when other people are present.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Group Polarization

The phenomenon where a group's prevailing opinions or decisions become more extreme following discussion among its members.

Diffusion of Responsibility

A phenomenon where individuals are less likely to take action or feel responsible in the presence of a large group of people.