What Happens If the Brazilian Real Appreciates Relative to the U.S

question 271

Multiple Choice

What happens if the Brazilian real appreciates relative to the U.S. dollar?

• A) Brazilians will buy fewer U.S. goods, which generates an increase in the quantity supplied of dollars.
• B) The quantity demanded of reals increases as U.S. residents want to buy more Brazilian products.
• C) The quantity of reals supplied increases because the lower price (in reals) for U.S. goods induces Brazilians to buy more U.S. products.
• D) The U.S. Federal Reserve Bank increases the supply of dollars to the world economy.

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Definitions:

Electrical Activity

The natural phenomena of electric charges movement, observed especially in biological contexts like brain and heart function.

EEG

A test that detects electrical activity in the brain using small, metal discs attached to the scalp.

Brain

The organ located within the skull that is the center of the nervous system in all vertebrates and most invertebrates, responsible for coordinating sensation, intellectual and nervous activity.

Pituitary Gland

A pea-sized gland located at the base of the brain that produces hormones regulating growth, blood pressure, and other important body functions.