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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.

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What are the economic and political arguments for regional economic integration?
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Economic argument could be seen as an attempt to support the idea of promoting economic growth thorough promotion of trade. It supports that the integration makes an attempt to to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under international agreements such as the WTO.

The political argument holds that with such arrangements and agreements , nations linked each other and become more dependent on each other and forming a structure where they regularly have to interact, the likelihood of violent conflict and war will decrease, and also by linking nations together, they have greater clout and are politically much stronger in dealing with other nations.

Discriminatory tariff reductions lead to trade creation and trade diversion, due to which there is a fall in regional integration.

Here are some ideas for argumental topics that allow you to collect information to support your opinion.

Moral Dilemmas

A moral dilemma forces you to think about the right thing to do in a challenging situation. Is it right to steal a loaf of bread to feed your starving family? Is it right to kill someone who is endangering your life? Can two wrongs ever make a right? A good dilemma allows for development on either side of the argument, which is why moral dilemmas are perfect argumental topics.

Political Issues

Political issues are excellent argumental topics if you need inspiration. A little research into opposing politicians' speeches can help you discover the basics of either position. Take these basics and transform the arguments into your own words for a great argumentative essay.

Human Rights Issues

Whether it's crime and punishment or interfering with another government's crime and punishment, human rights issues can make a great argumental topic. Whose needs are the most important? You must choose whether to interfere or not, and defend that choice.

Issues of Personal Interest

If you're looking for something closer to home for your argumental topic, choose an issue near and dear to your heart. Should the school cafeteria serve more pizza or more organic produce? Does every teenager need a cell phone and a car? You've argued with your parents, now turn it into an actual argumental topic and support your heartfelt point of view. As a bonus, you may be able to make real changes in your personal life to your own benefit.

The best argumental topics have two possible valid points of view and provide room for you to gather plenty of evidence in support of the side that you choose. Remember to support your own point of view and find talking points to undermine the opposition. This shows that you truly understand the argumental topic you're discussing.

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2 years ago
HELP ME PLZZ I NEED HELP WITH THIS!!<br> IT is not the last One!!!
goldenfox [79]

Answer:

D

Explanation:

can you please give me a brainliest:)

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Answer:

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Explanation:

If they were to have different currencies were to be different, you could only know how much money a certain state has because it's different.

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algol13

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