The Strong Dollar in 2001

question 86

Multiple Choice

The strong dollar in 2001

• A) made U.S. exports more attractive relative to foreign goods, thereby increasing U.S. exports.
• B) made U.S. exports more expensive relative to foreign goods, thereby reducing U.S. exports.
• C) made U.S. imports more expensive, thereby reducing aggregate demand.
• D) made U.S. imports more attractive, thereby increasing aggregate demand.

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Definitions:

Operations

The day-to-day activities involved in running a business, such as production, purchasing, and distribution, aimed at generating profits.

Cash Paid

The actual outflow of cash or cash equivalents as payment for goods, services, or financial obligations.

Wages and Salaries

Payments made to employees in exchange for their labor or services, categorized as either hourly (wages) or fixed annual amounts (salaries).

Cash and Cash Equivalents

Liquid assets that include currency, checks, and short-term investments that can be quickly converted to cash.