Which of the Following Is Likely to Decrease the Supply

question 47

Multiple Choice

Which of the following is likely to decrease the supply of U.S. dollars in the forex market?

• A) If foreign interest rates are low relative to U.S. interest rates
• B) If investors' confidence in foreign economies increases
• C) If U.S. consumers prefer foreign goods to U.S. goods
• D) All of these will increase the supply of U.S. dollars.

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Definitions:

Economic Rent

The price paid for the use of land and other natural resources that are in fixed (perfectly inelastic) supply.

Antipoverty Programs

Governmental or non-profit organization initiatives designed to reduce or eliminate poverty by providing financial assistance, education, or job training.

Productive Capacity

Refers to the maximum output a system, economy, or machine can produce over a period of time under normal conditions.

Supply of Land

The total availability of land resources that can be used for various purposes, often considered perfectly inelastic.