All Other Things Unchanged, an Decrease in the Value of the Dollar

question 54

Multiple Choice

All other things unchanged, an decrease in the value of the dollar against the euro

• A) increases U.S. net exports and shifts the investment demand curve to the right.
• B) decreases U.S. net exports and shifts the investment demand curve to the right.
• C) increases U.S. net exports and shifts the aggregate demand curve to the right.
• D) decreases U.S. net exports and shifts the aggregate demand curve to the left.

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Definitions:

Ordinary Gain

A profit resulting from business operations or the sale of assets, excluding extraordinary items and discontinued operations.

Extraordinary Gain

A gain resulting from events or transactions that are both unusual in nature and infrequent in occurrence, separated from regular business operations.

Fair Market Value

The price at which an asset would sell in the market under conditions where buyers and sellers are acting freely, informed, and without undue pressure.

Book Value

The net value of a company's assets as listed on the balance sheet, calculated as total assets minus intangible assets (like goodwill) and liabilities.