As a Result of the 2008-2009 Financial Crisis and the Decrease

question 245

Multiple Choice

As a result of the 2008-2009 financial crisis and the decrease in GDP in many European economies, we would expect

• A) an increase in the demand for U.S. exports and a leftward shift in the demand curve for dollars.
• B) a decrease in the demand for U.S. exports and a leftward shift in the demand curve for dollars.
• C) a decrease in the demand for U.S. exports and a rightward shift in the demand curve for dollars.
• D) a decrease in the demand for U.S. imports and a movement up along the demand curve for dollars.

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Definitions:

Bonds

A fixed-income investment representing a loan made by an investor to a borrower, usually corporate or governmental.

Trading Investments

Securities bought and held primarily for sale in the near term to generate income on short-term price differences.

Bonds Payable

Bonds payable are long-term liabilities representing money a company must pay back to bondholders by a certain date, including the principal and sometimes interest payments.

Long-Term Investments

Investments that a company intends to hold for more than one year, including stocks, bonds, real estate, and other financial assets.