What Happens If the Brazilian Real Appreciates Relative to the U.S

question 271

Multiple Choice

What happens if the Brazilian real appreciates relative to the U.S. dollar?

• A) Brazilians will buy fewer U.S. goods, which generates an increase in the quantity supplied of dollars.
• B) The quantity demanded of reals increases as U.S. residents want to buy more Brazilian products.
• C) The quantity of reals supplied increases because the lower price (in reals) for U.S. goods induces Brazilians to buy more U.S. products.
• D) The U.S. Federal Reserve Bank increases the supply of dollars to the world economy.

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Definitions:

Sons of Liberty

A secret organization formed in the American colonies to protect the rights of the colonists and to fight the abuses of taxation by the British government.

Stamp Act

A law passed by the British Parliament in 1765 requiring all legal and commercial documents in the American colonies to bear an official tax stamp, leading to widespread protests and contributing to the American Revolutionary movement.

Differential-compound

Refers to a type of compound wound DC generator or motor that combines both series and shunt windings to achieve specific electrical characteristics.

Cumulative-compound

Refers to a type of DC generator where both series and shunt field windings add their magnetic fluxes to produce the total output voltage.