The Strong Appreciation of the Dollar for the Last Part

question 52

Multiple Choice

The strong appreciation of the dollar for the last part of the 1990s:

• A)Was a benefit to all U.S.residents but costly to most foreign producers
• B)Was a benefit to U.S.exporters, but put a severe strain on U.S.Importers
• C)Was welcomed by all U.S.manufacturers
• D)Played a key role in keeping inflation in check even though the economy was growing rapidly

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at various price levels, typically downward sloping.

Recession

A short-lived economic contraction, featuring a reduction in both trade and industrial activities, conventionally confirmed by observing a GDP decrease in two back-to-back quarters.

Money Demand Curve

A graphical representation showing the relationship between the interest rate and the total quantity of money that people hold at various levels of interest.

Nominal GDP

The market value of all final goods and services produced within a country in a specific period, measured in current prices.