Suppose the Supply of Dollars Decreased from S₂ to S₁

question 27

Multiple Choice

Suppose the supply of dollars decreased from S₂ to S₁ in Figure 36.3.As a result of this change,

• A)Swiss chocolate imports to the United States will be lower-priced in dollars.
• B)U.S.computer exports to Switzerland will be lower-priced in dollars.
• C)A trade deficit will be created in Switzerland.
• D)The Swiss franc will gain value worldwide.

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Definitions:

Hippocampus

The structure in the limbic system that has a special role in the storage of memories.

Hypothalamus

A small forebrain structure, located just below the thalamus, that monitors three pleasurable activities—eating, drinking, and sexual behavior—as well as emotion, stress, and reward.

Parietal Lobes

Structures at the top and toward the rear of the head that are involved in registering spatial location, attention, and motor control.

Frustration-Aggression Hypothesis

A psychological theory suggesting that frustration often leads to aggressive behavior.