Data on the Relationship Between the U

question 29

Multiple Choice

Data on the relationship between the U.S. multilateral real exchange rate and the U.S. trade balance show:

• A) a surprising result that the decrease in the trade balance is correlated with an increase (depreciation) of the U.S. dollar multilateral real exchange rate.
• B) a predictable result that the increase in the trade balance is correlated with an increase (depreciation) of the U.S. dollar multilateral real exchange rate.
• C) a correlation that is so weak it cannot be used to support the theory that the trade balance is related to the real effective exchange rate of the U.S. dollar.
• D) a surprising result that the increase in the U.S. trade balance occurs with a decrease (appreciation) in the real effective exchange rate of the dollar.

---

Definitions:

Digital Marketspace

An online platform or environment where businesses and consumers can interact and conduct transactions electronically.

Recreational Equipment, Inc.

An American retail and outdoor recreation services corporation, often referred to by its abbreviation, REI.

Form Utility

The value added to a product through the process of altering its form or assembling its components to make it more useful or appealing to customers.

Marketspace Opportunity

Prospects for business growth and development within online or digital marketplaces, driven by changing consumer behaviors and technological advancements.