The U.S.dollar Will Appreciate If

question 143

Multiple Choice

The U.S.dollar will appreciate if:

• A)the U.S.demand for foreign exchange decreases.
• B)the U.S.demand for foreign exchange increases.
• C)the supply of foreign exchange increases in the foreign exchange market.
• D)Americans want to buy more foreign goods.
• E)foreigners want fewer American goods.

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Definitions:

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the potential benefits missed.

Inward

Often used in economics to describe movements towards the center of an economic system, such as inward investment, referring to investment in domestic resources from foreign entities.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one could have received by taking the alternative action.

Hybrid Cars

Vehicles that use a combination of at least one electric motor alongside a gasoline engine to propel the vehicle, offering improved fuel efficiency.