Which of the Following Would Tend to Shift the Supply

question 41

Multiple Choice

Which of the following would tend to shift the supply of dollars in the market for foreign-currency exchange in the open-economy macroeconomic model to the right?

• A)the exchange rate rises
• B)the exchange rate falls
• C)the expected rate of return on U.S.assets rises
• D)the expected rate of return on U.S.assets falls

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Definitions:

Units

Basic quantities or measurements, such as items sold or produced, used for analysis or calculation in various contexts.

Unit Elastic

A scenario in demand or supply where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Tax Lowered

The reduction of the rates at which individuals or corporations are taxed by the government.

Demand and Supply

Refers to the economic model that determines the price of goods in a market based on the quantity demanded by consumers and the quantity supplied by producers.