If International Speculators Lose Confidence in Foreign Economies and Want

question 348

Multiple Choice

If international speculators lose confidence in foreign economies and want to move some of their wealth into the U.S.economy,then in the short run there is

• A) an increase in the value of the U.S.dollar in foreign exchange markets,a lower level of U.S.output and a lower U.S.price level.
• B) an increase in the value of the U.S.dollar in foreign exchange markets,a higher level of U.S.output and a higher U.S.price level.
• C) a decrease in the value of the U.S.dollar in foreign exchange markets,a lower level of U.S.output and a lower U.S.price level.
• D) a decrease in the value of the U.S.dollar in foreign exchange markets,a lower level of U.S.output and a higher U.S.price level.

---

Definitions:

Pacific Ocean

The largest and deepest of the Earth's oceanic divisions, extending from the Arctic in the north to the Southern Ocean in the south.

Sacajawea

A Lemhi Shoshone woman who is best known for her role as a guide and interpreter for the Lewis and Clark expedition in the early 1800s.

Lewis and Clark

refers to Meriwether Lewis and William Clark, who led the early 19th-century expedition across the western United States, commissioned by President Thomas Jefferson.

Shoshone Indian

A member of a Native American tribe originally living in the western United States, known for their nomadic lifestyle.