If There Is an Increase in the Expected Future U

question 102

Multiple Choice

If there is an increase in the expected future U.S. exchange rate, there is

• A) an upward movement along the demand curve for dollars.
• B) a downward movement along the demand curve for dollars.
• C) a leftward shift of the demand curve for dollars.
• D) a rightward shift of the demand curve for dollars.

---

Definitions:

Demand Shock

A sudden event that increases or decreases demand for goods or services, affecting prices and the economy.

Government Spending

Expenditures made by the government for its operational needs and to provide public services.

Money Supply

The total amount of monetary assets available in an economy at any specified time.

Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues.