If Exchange Rates Are Fixed, Then an Increase in Canada's

question 290

Multiple Choice

If exchange rates are fixed, then an increase in Canada's export prices causes

• A) U.S. import prices to fall.
• B) U.S. import prices to rise.
• C) Canadian import prices to fall.
• D) Canadian import prices to rise.

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Definitions:

Direct Costs

Expenses that can be directly traced to the production of specific goods or services.

Indirect Costs

Expenses that are not directly tied to the production of goods or services, such as overhead, administration, and salaries.

Salespersons' Salaries

Fixed or variable payments made to sales staff as compensation for their services, typically involving a base salary and possibly commissions.

Direct Costs

Costs that can be directly traced to a specific product, project, or activity without any ambiguity.