If USdemand for Imports Increases It Would Be Expected That the the Value

question 57

Multiple Choice

If U.S.demand for imports increases it would be expected that the value of the dollar in international currency markets would tend to

• A)increase.
• B)change in a manner that cannot be determined without additional information concerning the direction of the shifts in the demand for and supply of dollars.
• C)decline.
• D)remain unchanged.

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Definitions:

Determinants of Market Demand

Factors that influence the total quantity of a good or service that consumers in a market are willing and able to purchase at various prices.

Change in Supply

An alteration in the quantity of a product that producers are willing and able to sell in the market, due to factors like changes in cost of production or technological improvements.

Quantity Supplied

The quantity supplied refers to the amount of a good or service that producers are willing to sell at a given price over a specified period.

Rationing Function

The process by which a scarce resource is distributed among competing users.