If USResidents Want to Buy More Foreign Bonds,then in the Market

question 13

Multiple Choice

If U.S.residents want to buy more foreign bonds,then in the market for foreign-currency exchange the exchange rate

• A)and the quantity of dollars traded rises.
• B)rises and the quantity of dollars traded falls.
• C)falls and the quantity of dollars traded rises.
• D)and the quantity of dollars traded falls.

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Definitions:

Tension

The state of being stretched tight, or mental or emotional strain.

Biological Needs

Basic physiological requirements essential for maintaining life, such as food, water, and shelter.

Motives

Internal states or conditions that activate behavior and give it direction towards specific goals or needs.

Equilibrium

Equilibrium is a state of balance or stability within a system, achieved through the equal action of opposing forces.