In a Perfectly Floating Exchange Rate Regime,according to the Monetary

question 46

Multiple Choice

In a perfectly floating exchange rate regime,according to the monetary approach to the exchange rate MAER,what would be the effect of a decrease in U.S.output growth by 3% on the dollar price of a Swiss franc $/SFr?

• A) Swiss franc would depreciate against the dollar.
• B) Swiss franc would appreciate against the dollar.
• C) The exchange rate remains unaffected.
• D) The dollar would appreciate against the Swiss Franc.

---

Definitions:

True Ribs

The first seven pairs of ribs, which are directly attached to the sternum via costal cartilages.

Vertebral Curves

The natural curvatures in the spine that help absorb shock and maintain balance in the human body.

Flexibility

The ability to move joints through their full range of motion; important in fitness, wellness, and preventing injuries.

Balance

The ability to maintain the body's center of mass over its base of support, a key component of motor coordination.