Between 1998 and the End of 2000, the U

question 22

Multiple Choice

Between 1998 and the end of 2000, the U.S. ran a large trade deficit; this should have caused the dollar to depreciate against foreign currencies but instead the dollar appreciated. The main reason for this is:

• A) foreign exchange markets are slow to react.
• B) the supply of dollars actually fell.
• C) the dramatic increase in U.S. stock prices attracted a lot of foreign capital increasing the demand for dollars by more than the increase in the supply of dollars.
• D) the demand for dollars shifted left by more than the supply of dollars shifted right.

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Definitions:

House Rules Committee

A powerful committee in the U.S. House of Representatives responsible for determining under what rule other bills will come to the floor.

Appropriations Committees

Committees within legislative bodies that are responsible for determining the specific allocations of government spending.

Private Bill

A proposal for legislation that would apply to a specific individual or group of individuals, or corporate entity, rather than the public at large.

Public Bill

Legislation that pertains to the general public and society at large, as opposed to private bills which affect only specific individuals or groups.