Can the US

question 100

Multiple Choice

Can the U.S. dollar and the euro both appreciate relative to each other?

• A)​Yes, both countries can gain in this manner.
• B)​Yes, provided the central banks agree to permit it.
• C)​No, if one currency appreciates relative to another, the other depreciates.
• D)​No, the citizens of the countries would not agree to it.

---

Definitions:

Nominal GDP

The total market value of all goods and services produced within a country’s borders in a given period without adjusting for inflation.

Short Run

In economics, the short run is a period in which at least one input, like equipment or labor, is fixed and cannot be changed, influencing decision-making and production levels.

Aggregate Quantity Supplied

The total amount of goods and services that producers are willing and able to supply at a given price level in an economy.

Free Trade Credit

Credit received during the discount period.