Which of the following would likely cause the dollar to appreciate?
a) Lower interest rates in the United States.
b) An increase in United States citizens' preference for foreign goods.
c) Income growth of the United States lagging behind that of other countries.
d) Rising inflation in the United States.
Ans: c) Income growth of the United States lagging behind that of other countries.
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Which of the following statements is true about the U.S. economy?
A) Each year, many new jobs are created, but few existing jobs are destroyed, and the unemployed find jobs quickly. B) Each year few jobs are created, and therefore it takes the unemployed a long time to find a new job. C) Each year, few new jobs are created, but few existing jobs are destroyed, keeping unemployment low. D) Each year, many new jobs are created and many existing jobs are destroyed.
If an economic model includes an assumption that there are only two nations in the world, this would be an example of
a. a critical assumption b. an implicit assumption c. a simplifying assumption d. a concrete assumption e. a detail assumption