An Increase in the World Relative Demand for U

question 44

Multiple Choice

An increase in the world relative demand for U.S. output causes

• A) a short-run real depreciation of the dollar against the euro.
• B) a long-run real appreciation of the dollar against the euro.
• C) a long-run real depreciation of the dollar against the euro.
• D) a short-run real appreciation of the euro against the dollar.
• E) a long-run real appreciation of the euro against the dollar.

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Definitions:

Continental Shelf

A submerged extension of a continent, ranging from the shoreline to a drop-off point known as the shelf break.

Hydrothermal Vents

Openings on the seafloor that emit hot, mineral-rich water, supporting unique ecosystems independent of sunlight.

Giant Worm Tubes

Large tubular structures created by certain species of marine worms, which serve as their protective habitats on the ocean floor.

H2S

hydrogen sulfide, a toxic, flammable gas with a characteristic odor of rotten eggs, found in many natural and man-made environments.