Which One of the Following Statements Is the MOST Accurate

question 5

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) A rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
• B) A rise in the interest rate offered by dollar deposits causes the dollar to depreciate.
• C) A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar.
• D) For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
• E) A rise in the interest rate offered by the dollar causes the euro to appreciate.

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Definitions:

Matriarchal

A social system in which women hold primary power, typically in roles of political leadership, moral authority, social privilege, and control of property.

Monarchical

Pertaining to a monarchy, a form of government in which a single figure, the monarch, acts as the head of state within the parameters of a constitution or laws.

Hierarchical Society

A society in which individuals or groups are ranked one above the other based on status or authority.

Dominant Group

The social group considered to have the most power, influence, and rights in a particular context or society.