Under a Flexible Exchange Rate System, an Increase in the Value

question 233

Multiple Choice

Under a flexible exchange rate system, an increase in the value of the U.S. dollar in terms of other currencies is referred to as

• A) a depreciation of the U.S. dollar.
• B) an appreciation of the U.S. dollar.
• C) a monetizing of the U.S. dollar.
• D) a devaluation of the U.S. dollar.

---

Definitions:

Coefficient Of Determination

A statistic that indicates the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Estimated Regression Equation

A formula that represents the relationship between dependent and independent variables and is used to predict the value of the dependent variable.

Correlation Coefficient

A numerical measure of some type of correlation, meaning a statistical relationship between two variables, ranging between -1 and 1.

Standard Error

The standard deviation of the sampling distribution of a statistic, indicating the accuracy of the estimate.