# Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ? Correct Answer: A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

---

Tested in Competitive Exams:

- [NTS Test Prep](https://test-prep.blog/exams/nts)
- [FPSC Past Papers](https://test-prep.blog/exams/fpsc)
- [PPSC Solved MCQs](https://test-prep.blog/exams/ppsc)
- [PMDC MDCAT 2026](https://test-prep.blog/exams/mdcat)
- [UET ECAT Prep](https://test-prep.blog/exams/ecat)
- [CSS Central Superior](https://test-prep.blog/exams/css)

- [Economics Mcqs](https://test-prep.blog/categories/economics-mcqs)
Difficulty: Moderate 72% Accuracy

# Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?

Direct Answer & Quick Reference

The correct option is **A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar**.

A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar **(Correct Answer)**

B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar

D. decrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar

✨ Explain with AI

Verified Key: A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
Solved by 4,252+ students

Verified against official examination board answer keys and standard curriculum textbooks.

- [Previous Question The World Bank classifies countries into four groups. This classification is based upon:](https://test-prep.blog/mcq/the-world-bank-classifies-countries-into-four-groups-this-classification-is-base-8bb589e9-b9c0-41d7-b271-8c23bba7451c)
- [Next Question Automatic stabilizers are one of the _____ policy tools.](https://test-prep.blog/mcq/automatic-stabilizers-are-one-of-the-policy-tools-1586d9a0-f8b5-4c77-b48d-db492aec26a1)

- [Practice More Economics Mcqs MCQs](https://test-prep.blog/quiz/smart?category=economics-mcqs)
- [How We Verify Questions →](https://test-prep.blog/editorial-policy)

## Subject Overview

Explore thousands of solved past paper MCQs for Economics Mcqs categorized with explanations.

- [Browse All Economics Mcqs MCQs →](https://test-prep.blog/categories/economics-mcqs)

## Related Questions

- [The World Bank classifies countries into four groups. This classification is based upon:](https://test-prep.blog/mcq/the-world-bank-classifies-countries-into-four-groups-this-classification-is-base-8bb589e9-b9c0-41d7-b271-8c23bba7451c)
- [Automatic stabilizers are one of the _____ policy tools.](https://test-prep.blog/mcq/automatic-stabilizers-are-one-of-the-policy-tools-1586d9a0-f8b5-4c77-b48d-db492aec26a1)
- [Increase in supply of money will positively affect:](https://test-prep.blog/mcq/increase-in-supply-of-money-will-positively-affect-a3edbc22-9144-4668-b4c3-4932e7b4dc55)
- [The relationship between inflation and unemployment is represented by:](https://test-prep.blog/mcq/the-relationship-between-inflation-and-unemployment-is-represented-by-c31075ef-a94e-4bb2-b6b6-ee62d4b45dc4)
- [Which of the following is not a component of GDP?](https://test-prep.blog/mcq/which-of-the-following-is-not-a-component-of-gdp-cffa15fa-914c-4546-b0a2-439f891ad6e0)

---
*Source: https://test-prep.blog/mcq/under-a-system-of-floating-exchange-rates-relatively-low-productivity-and-high-i-44cbc93b-01c2-40bc-a18c-e6628a61ed83*
*Format: Markdown for Agents (Content Negotiation: text/markdown)*