Which of the Following Would Cause the Real Exchange Rate

question 119

Multiple Choice

Which of the following would cause the real exchange rate of the U.S.dollar to depreciate?

• A)the U.S.government budget deficit decreases
• B)capital flight from foreign countries
• C)the U.S.imposes import quotas
• D)None of the above is correct.

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Definitions:

General Adaptation Syndrome

A theoretical model describing the body's short-term and long-term reactions to stress, proposed by Hans Selye, comprising three stages: alarm, resistance, and exhaustion.

Hans Selye

A pioneering Hungarian-Canadian endocrinologist who is credited with founding the field of stress research, identifying the General Adaptation Syndrome.

Physical Effect

The tangible or observable impact or influence that something has on the body.

Hardy Personality

A personality trait characterized by resilience and the ability to remain calm and clear-headed under pressure or during difficult situations.