If Banks and Speculators in the U

question 130

Multiple Choice

If banks and speculators in the U.S.decided to exchange U.S.dollars for the foreign currencies of other countries,but foreigners do not desire to increase their holdings of U.S.dollars,then U.S.net exports would

• A)rise and aggregate demand would shift left.
• B)rise and aggregate demand would shift right.
• C)fall and aggregate demand would shift left.
• D)fall and aggregate demand would shift right.

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Definitions:

Debit

An accounting entry that represents an increase in assets or expenses, or a decrease in liabilities or equity, recorded on the left side of the accounting ledger.

Credit

The provision of goods, services, or money with the expectation of future payment, or an entry in accounting that increases liabilities and decreases assets.

Transactions

Financial events that involve the transfer of value between two parties, recording in accounting records.

Source Document

An original record or document that contains the details of a business transaction, used as the basis for recording and validating financial data.