If Speculators Bid Up the Value of the U

question 39

Multiple Choice

If speculators bid up the value of the U.S.dollar in the market for foreign exchange,then

• A)U.S.goods become more expensive relative to foreign goods so aggregate demand shifts right.
• B)U.S.goods become less expensive relative to foreign goods so aggregate demand shifts right.
• C)U.S.goods become more expensive relative to foreign goods so aggregate demand shifts left.
• D)U.S.goods become less expensive relative to foreign goods so aggregate demand shifts left.

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Definitions:

Dividend Payout Rate

A measure of the percentage of earnings a company pays to its shareholders in the form of dividends.

High Dividend

Refers to stocks or securities that pay out significant portions of profit in the form of dividends compared to their stock price.

High Dividend Payout

A scenario where a company distributes a large portion of its earnings to its shareholders in the form of dividends.