The amount of goods and services you can buy with a dollar in the global market Blank______.Multiple choice question.increases with a falling dollar valueis not affected by the value of a dollarincreases with a rising dollar valueincreases during a period of inflation
Question
The amount of goods and services you can buy with a dollar in the global market Blank______.Multiple choice question.increases with a falling dollar valueis not affected by the value of a dollarincreases with a rising dollar valueincreases during a period of inflation
Solution
The correct answer is "increases with a rising dollar value".
Here's why:
-
The value of a dollar in the global market is directly related to the amount of goods and services you can buy with it. When the value of the dollar rises, it means that each dollar can buy more goods and services. This is because a stronger dollar can purchase more of a foreign currency, which can then be used to buy goods and services in that foreign country.
-
On the other hand, when the value of the dollar falls, each dollar can buy less goods and services. This is because a weaker dollar can purchase less of a foreign currency, which can then be used to buy goods and services in that foreign country.
-
The value of a dollar is not affected by inflation. Inflation is a general increase in prices and fall in the purchasing value of money. So, during a period of inflation, the amount of goods and services you can buy with a dollar actually decreases, not increases.
-
The value of a dollar is also not unaffected by the value of a dollar. As explained above, the amount of goods and services you can buy with a dollar increases when the value of the dollar rises, and decreases when the value of the dollar falls.
Similar Questions
Which statement about a falling dollar value in the global market is correct?Multiple choice question.A falling dollar value means the amount of goods and services you can buy in the global market increases.A falling dollar value means that there will be more goods available to buy in the global market.A falling dollar value means you cannot buy as many goods and services in the global market.A falling dollar value means that there will be less goods available to buy in the global market.
If the Canadian dollar was fixed and the demand for Canadian goods decreased, the Canadian dollar would become _____ and there would be a _____ of Canadian dollars in the international markets.Multiple choice question.undervalued; surplusovervalued; surplusundervalued; shortageovervalued; shortage
Which of the following statements regarding inflation is correct?Group of answer choicesInflation is a sustained rise in the general price levelInflation increases your purchasing powerInflation causes prices of goods and services to decreaseInflation increases the value of the dollar
Multiple Choice QuestionA decline in the international value of its currency will reduce a nation's Blank______.Multiple choice question.importsterms of tradebalance of paymentsofficial reserves
Which of the following will NOT occur if the money supply increases?Multiple choice question.Investment will increaseReal GDP will increaseInterest rates will increaseAggregate expenditure will increase
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.