An Increase in the World Relative Demand for U

question 44

Multiple Choice

An increase in the world relative demand for U.S. output causes

• A) a short-run real depreciation of the dollar against the euro.
• B) a long-run real appreciation of the dollar against the euro.
• C) a long-run real depreciation of the dollar against the euro.
• D) a short-run real appreciation of the euro against the dollar.
• E) a long-run real appreciation of the euro against the dollar.

---

Definitions:

Thenar Eminence

The muscular bulge on the palm of the hand at the base of the thumb, composed of short muscles that control thumb movements.

Cubital Fossa

The cubital fossa is the triangular area on the anterior aspect of the human arm immediately distal to the elbow; it is bordered by the brachioradialis, pronator teres muscles, and the imaginary line connecting the epicondyles of the humerus.

Temporomandibular Joint

The hinge joint connecting the lower jaw to the temporal bone of the skull, enabling movements required for chewing and speaking.

Palpated

The act of examining a part of the body by touch, especially for medical purposes to detect abnormalities.