Each of the Following Would Increase the Supply of U

question 70

Multiple Choice

Each of the following would increase the supply of U.S.dollars, shifting the supply curve for dollars to the right, except:

• A)an increased preference for foreign-made goods.
• B)an increase in U.S.real GDP.
• C)an increase in the real interest rate on foreign assets.
• D)an appreciation of the U.S.dollar relative to other currencies.

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Definitions:

Federal Agency

An organization part of the government of the United States that operates either independently or under the direct administration of federal executive departments.

Farm Subsidies

Governmental grants provided to farmers to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Agricultural Interests

Concerns or advantages related to the farming industry, including crop production, livestock management, and agricultural policy impacts.

Special-Interest Issue

An issue that generates substantial individual benefits to a small minority while imposing a small individual cost on many other citizens. In total, the net cost to the majority might either exceed or fall short of the net benefits to the special-interest group.