In the Open-Economy Macroeconomic Model,a Higher U

question 86

Multiple Choice

In the open-economy macroeconomic model,a higher U.S.real exchange rate makes

• A)U.S.goods more expensive relative to foreign goods and reduces the quantity of dollars supplied.
• B)U.S.goods more expensive relative to foreign goods and reduces the quantity of dollars demanded.
• C)foreign goods more expensive relative to U.S.goods and reduces the quantity of dollars supplied.
• D)foreign goods more expensive relative to U.S.goods and reduces the quantity of dollars demanded.

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Definitions:

Mnemonic

A learning technique that aids in the recall of information by associating complex information with simple, memorable cues.

Acronym

A word formed from the initial letters or groups of letters of words in a phrase or series of words, used as an abbreviation (e.g., NASA, scuba).

Hum

A low, steady, continuous sound often produced by machinery, electronic devices, or by a group of similar sounds blending together.

Misinformation Effect Paradigm

A phenomenon in which a person's recall of an event becomes less accurate due to the introduction of misleading information.