Suppose the Real Exchange Rate Is Such That the Market

question 35

Multiple Choice

Suppose the real exchange rate is such that the market for foreign-currency exchange has a surplus.This surplus will lead to

• A)an appreciation of the dollar,an increase in U.S.net exports,and so an increase in the quantity of dollars demanded in the foreign exchange market.
• B)an appreciation of the dollar,a decrease in U.S.net exports,and so a decrease in the quantity of dollars demanded in the foreign exchange market.
• C)a depreciation of the dollar,an increase in U.S.net exports,and so an increase in the quantity of dollars demanded in the foreign exchange market.
• D)a depreciation of the dollar,a decrease in U.S.net exports,and so a decrease in the quantity of dollars demanded in the foreign exchange market.

---

Definitions:

Federal District Court

The general trial courts of the United States federal court system, where civil and criminal cases are filed and heard.

Exclusive Jurisdiction

A situation in which only a particular court has the power to adjudicate a case to the exclusion of all others.

Procedural Rules

Regulations or guidelines that govern the procedures to be followed in court proceedings or other formal processes.

Federal Court

A judicial tribunal established by the United States government, with authority derived from the Constitution and federal laws, to adjudicate disputes that involve national statutes, constitutional issues, and other matters within federal jurisdiction.