Higher Tariffs and Quotas Cause a Country's Currency to ________

question 106

Multiple Choice

Higher tariffs and quotas cause a country's currency to ________ in the ________ run,everything else held constant.

• A)depreciate;short
• B)appreciate;short
• C)depreciate;long
• D)appreciate;long

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, due to fixed costs within a company's operating structure.

Variable Costs

Charges that shift in alignment with the volume of business activity.

Operating Income

Income generated from a company's primary business operations, excluding revenue from investments and other non-operational sources.

Sales Mix

The combination of different products or services that a company sells, represented in terms of the proportion each contributes to total sales.