How Will the Exchange Rate (Foreign Currency Per Dollar)respond to an Increase

question 106

Multiple Choice

How will the exchange rate (foreign currency per dollar) respond to an increase in preference for imported goods in the United States in the long run?

• A)Exchange rates will rise.
• B)Exchange rates will fall.
• C)Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States,both in the short run and in the long run.
• D)The exchange rate will be affected in the short run,but not in the long run.

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Definitions:

Facial Nerve

The seventh cranial nerve that controls the muscles of facial expression, taste sensations from the front two-thirds of the tongue, and other functions.

Oculomotor Nerve

The third cranial nerve responsible for the control of most of the eye's movements, including the constriction of the pupil and maintaining an open eyelid.

Dorsal Spinal Cord

The portion of the spinal cord that is oriented toward the back of the body, responsible for transmitting sensory information from the body to the brain.

Ventral Spinal Cord

The front section of the spinal cord, which contains motor neurons that control muscles and movement.