Which of the Following Would Cause the Real Exchange Rate

question 119

Multiple Choice

Which of the following would cause the real exchange rate of the U.S.dollar to depreciate?

• A)the U.S.government budget deficit decreases
• B)capital flight from foreign countries
• C)the U.S.imposes import quotas
• D)None of the above is correct.

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Definitions:

Osmosis

The movement of water molecules through a selectively permeable membrane from a region of lower solute concentration to a region of higher solute concentration.

Solute Molecules

Molecules dissolved in a solvent to form a solution, playing crucial roles in chemical and biological processes.

Kidney Dialysis

Kidney dialysis is a medical procedure that mimics the function of the kidneys by removing waste products and excess fluid from the blood when the kidneys are no longer able to do so.

Semipermeable Membrane

A semipermeable membrane is a type of biological or synthetic, polymeric membrane that will allow certain molecules or ions to pass through it by diffusion and occasionally specialized "facilitated diffusion".