Which of the Following Statements Are True,and Which Are False

question 174

Essay

Which of the following statements are true,and which are false? Briefly explain your answers.
(A)The dollar value of the domestic currency will increase when U.S.interest rates decline.
(B)When the rate of inflation falls,the central bank typically raises the interest rate.
(C)A lower interest rate typically leads to higher net exports because a lower interest rate lowers the value of the dollar.
(D)A decline in the interest rate will reduce investment.

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Definitions:

Shays's Rebellion

An armed uprising in Massachusetts (1786-1787), led by Daniel Shays, protesting economic injustices and the lack of government response to the economic plight of farmers.

Virginia Plan

A proposal by Virginia delegates for a bicameral legislative branch during the drafting of the United States Constitution in 1787.

New Jersey Plan

A proposal for the structure of the United States Government presented at the Constitutional Convention in 1787, emphasizing equal state representation in Congress regardless of population.

Republicanism

A political ideology centered on citizenship in a state organized as a republic under which the people hold popular sovereignty.