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:

Transmission Lube Level

The optimal amount of lubricant within a transmission system, crucial for smooth operation and preventing wear.

Overdrive Ratio

A gear ratio in which the output speed of a transmission is higher than the input speed, resulting in lower engine RPM and improved fuel efficiency at high speeds.

Auxiliary Section

A supplementary part or segment of a machine or system, providing additional functionality or capacity.