What Effect Does a Depreciation of the Dollar Have on Real

question 221

Multiple Choice

What effect does a depreciation of the dollar have on real GDP in the United States in the short run?

• A)Real GDP will fall.
• B)Real GDP will rise.
• C)Real GDP will be unaffected by the depreciation of the dollar.
• D)Real GDP will be unchanged,but nominal GDP will rise.

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Definitions:

Opponent-Process Theory

A theory of color vision that proposes three pairs of color antagonists: red-green, blue-yellow, and white-black. Excitation of neurons sensitive to one member of a pair automatically inhibits neurons sensitive to the other member.

Impulse Frequency Theory

A theory that proposes the frequency of nerve impulses, or action potentials, is related to the intensity of a sensation such as sound or light.

Timbre

The quality of a sound apart from its pitch or loudness; timbre enables us to distinguish a clarinet from an oboe, or one person’s voice from another.

Sound Quality

The measure of how pleasing or accurate an audio output is from any given source.