An Increase in the Exchange Rate of the U

question 4

Multiple Choice

An increase in the exchange rate of the U.S.dollar relative to a trading partner can result from

• A) higher anticipated costs of production in the U.S.
• B) higher interest rates and higher inflation in the U.S.
• C) higher growth rates in the trading partner's economy
• D) a change in the terms of trade
• E) lower export industry productivity

---

Definitions:

CNS

The central nervous system, comprising the brain and the spinal cord.

Integration Center

A part of the nervous system, such as the brain or spinal cord, where information is processed and interpreted to initiate a response.

Reflex Arc

A neural pathway that controls an involuntary, rapid response to a stimulus.

Stretch Reflex Tests

Diagnostic tests that assess the muscle stretch reflexes, evaluating the functioning of the nervous system by tapping certain tendons.