(Figure: the Domestic Interest Rate) Using the Graph, If the Expected

question 132

Multiple Choice

(Figure: The Domestic Interest Rate) Using the graph, if the expected future exchange rate falls from $1.224 to $1.15:

• A) the dollar interest rate line shifts up and the spot rate rises.
• B) the dollar interest rate line shifts down and the spot rate rises.
• C) the foreign return line shifts up and to the right and the spot rate rises.
• D) the foreign return line shifts down and to the left and the spot rate falls.

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Definitions:

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Preconscious

Mental content that is not currently in awareness but can be readily brought into awareness through attention or stimuli.

Conscious

Refers to being aware of one's own existence, sensations, thoughts, surroundings, and experiencing perceptions and emotions.

Unconscious

A part of the mind that houses thoughts, memories, and desires not within current conscious awareness but that nonetheless influence behaviors and emotions.