Which of the Following Events Would Most Likely Result in an Appreciation

question 62

Multiple Choice

Which of the following events would most likely result in an appreciation of the U.S. dollar?

• A) U.S. inflation is very high.
• B) The Fed indicates that it will raise U.S. interest rates.
• C) Future U.S. interest rates are expected to decline.
• D) Japan is expected to increase interest rates in the near future.

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Definitions:

Antitrust Laws

Legislation enacted to prevent new monopolies from forming, break up those that already exist, and regulate anti-competitive practices that may harm the market or consumers.

Social Welfare

Programs and policies designed to improve the well-being of individuals and groups in society, often provided by the government.

Marginal-Cost Pricing

A pricing strategy where the price of a good or service is equal to the incremental cost to produce one more unit of a good.

Government Subsidy

A financial contribution provided by the government to support industries or activities beneficial to the public interest, aimed at reducing their costs or encouraging more production and consumption.