1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
scoray [572]
3 years ago
14

A decrease in U.S. interest rates leads to: a. a depreciation of the dollar that leads to greater net exports. b. a depreciation

of the dollar that leads to smaller net exports. c. an appreciation of the dollar that leads to greater net exports. d. an appreciation of the dollar that leads to smaller net exports.
Social Studies
1 answer:
s344n2d4d5 [400]3 years ago
4 0

Answer:

a depreciation of the dollar that leads to greater net exports.

Explanation:

The interest rate is considered "the price of money". When the interest rate is high, more dollar is demanded and appreciated, as economic agents can make a greater profit from buying US bonds (which pay interest-rate). Thus, the dollar becomes more expensive. compared to other currencies. Conversely, when the interest rate decreases, the dollar tends to depreciate against other currencies.

Exports, in turn, are associated with the value between currencies. When the dollar depreciates, it means that more dollars can be bought with the same amount of foreign currency. In terms of trade, this stimulates exports, as dollar depreciation makes American products cheaper for other countries. Consequently, the competitiveness of the American economy increases as a whole.

For example, imagine a foreign company that buys US smartphones. If the rate is 1: 1, ie 1 foreign currency unit buys 1 dollar. Now imagine the Federal Reserve lowering the interest rate by depreciating the dollar so that the new exchange rate is 1: 1.20, ie 1 foreign currency buys $ 1.20. For the foreign company it was cheaper to buy American smartphones, as the dollar depreciated against its currency. In contrast, for the US to buy (import) goods from another country is more expensive. Since the net trade balance is the difference between exports and imports, the economy tends to have a higher net export balance.

You might be interested in
How did Constantinople and the Byzantine empire grow powerful ?
Feliz [49]
The answer is letter D
7 0
2 years ago
Which physical property is observed when a mineral leaves a white line on a black plate? (2 points)
Ymorist [56]
Streak color. Luster and color are incorrect
7 0
3 years ago
Read 2 more answers
The most common term limit across the states that have imposed them is ________ years.
Kitty [74]

Answer:

Option C.

Explanation:

Eight is the right answer.

A term limit is a lawful constraint that restricts the number of terms a director may serve in an extraordinary elected job. Where term limits are recognized in presidential and semi-presidential routines they assist as a method of limiting the authority for monopoly, wheresoever a leader perfectly fits "president for life". However, the most popular term limit across the states that have forced them is eight years.

4 0
3 years ago
In Josie's family, her mom has the greatest amount of centrality. She is the one everyone shares information with, and she then
n200080 [17]

Answer:

An all channel network is the kind of network in which the information in shared in all directions, the lateral, longitudinal, vertical, horizontal. It makes sure that this pattern of communication harvests an equal and unrestricted participative culture and gives rise to cross functional effort among the groups.

Josie's mom is very effectively capable of fostering those values and becoming the centralized unit to carry out all channel networking.

4 0
3 years ago
Most college students are "owls," with performance ________ across the day. most older adults are "larks," with performance ____
Helen [10]
I say D because college students are still kids and have energy all day whereas adults get tired easily.
8 0
3 years ago
Other questions:
  • Theorist __________ believed that external forces exert a strong impact on personality development, and his/her model of working
    11·1 answer
  • Where did the Mormon Trail begin?
    6·1 answer
  • Hello!<br> Why is important Saint Patrick's Day?<br> Answer if you know please!
    8·2 answers
  • Adjustments to timber management strategies meant to address long-term shortfalls will _______.
    12·1 answer
  • A sentence using complex
    10·1 answer
  • I NEED HELPPP ASAPP!!!
    6·1 answer
  • A product has reached its equilibrium price when:
    12·1 answer
  • Dr. Low is interested in studying the effect mood has on the willingness to help a stranger. She randomly assigns half of her pa
    7·2 answers
  • Many African Americans became involved in politics during Reconstruction by
    8·2 answers
  • Reading and performing music are generally believed to involve ______ of the brain. Multiple choice question.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!