Answer the Question on the Basis of the Following Table,which

question 8

Multiple Choice

Answer the question on the basis of the following table,which indicates the dollar price of libras,the currency used in the hypothetical nation of Libra.Assume that a system of freely floating exchange rates is in place. $\begin{array}{c}\begin{array}{c}(1) \\\text {Quantity of Libras}\\\underline{\text {Demanded (Billions) }}\\ 100 \\200 \\300 \\400 \end{array}\begin{array}{c}(2) \\\text {Dollar Price}\\\underline{\text {of Libras}}\\\$ 5 \\4\\3\\2\end{array}\begin{array}{c}(3) \\\text {Quantity of Libras}\\\underline{\text {Supplied (Billions) }}\\325 \\200 \\100 \\75\end{array}\end{array}$
Refer to the table.Suppose that Libra decided to import more U.S.products.We would expect the quantity of libras:

• A) demanded at each dollar price to rise and the dollar to depreciate relative to the libra.
• B) demanded at each dollar price to fall and the dollar to appreciate relative to the libra.
• C) supplied at each dollar price to rise and the dollar to appreciate relative to the libra.
• D) supplied at each dollar price to fall and the dollar to depreciate relative to the libra.

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Definitions:

Content Validity

The extent to which a test measures all aspects of the concept or construct it intends to assess.

Construct Validity

The extent to which an assessment accurately measures what it is supposed to measure.

Criterion Validity

The extent to which a measure is related to an outcome. It assesses whether a test reflects a certain set of abilities by correlating test results with a criterion measure.

Face Validity

The extent to which a test appears to measure what it is supposed to measure at face value.