Which of the Following Would Increase the U

question 17

Multiple Choice

Which of the following would increase the U.S.demand for foreign currency?

• A)an increase in the U.S.demand for foreign goods
• B)an increase in incomes abroad
• C)a decrease in U.S.incomes
• D)a decrease in the U.S.demand for foreign goods
• E)an increase in U.S.real interest rates

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Definitions:

Specializing

The process of focusing effort and resources on a limited number of activities to gain efficiency and expertise.

International Trade

The exchange of goods and services between countries, allowing for greater variety and availability of products, economies of scale, and increased efficiency.

Achieve

To successfully reach a desired or intended goal through effort, skill, or courage.

Marginal Cost

The heightened cost involved in the production of one additional product or service unit.