The Demand for Dollars Will Increase in Foreign-Exchange Markets If

question 6

Multiple Choice

The demand for dollars will increase in foreign-exchange markets if:

• A) U.S. interest rates are high relative to those overseas.
• B) the U.S. is perceived to be a riskier place for investment relative to other nations.
• C) foreigners want to buy less U.S. goods.
• D) US consumers decide to buy more foreign goods than before.

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Definitions:

Negative Phrasing

The use of words or expressions that convey a negative connotation, often used to dissuade or deter.

Positive Statement

An assertion or claim that reflects an objective observation about the world, which can be tested or verified.

Direct Approach

A straightforward method of communication or problem-solving that involves addressing issues without evasion or complication.

Direct Format

A straightforward and clear method of presentation or communication that goes straight to the point without unnecessary details.