Assume That an Economy Is Operating at Less Than Its

question 27

Multiple Choice

Assume that an economy is operating at less than its full-employment level of output.Which event would most likely increase an economy's exports?

• A)a rise in the tariff on products imported from abroad
• B)a fall in the prosperity of trading partners for this economy
• C)an appreciation of a nation's currency relative to foreign currencies
• D)a depreciation of a nation's currency relative to foreign currencies

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Definitions:

Higher Taxes

An increase in the tax rate or tax liability faced by individuals or corporations.

Exchange Rate

The price of one country's currency expressed in another country's currency, facilitating international trade and investment.

Multinational Corporations

Companies that operate in multiple countries, managing production or delivering services in more than one country.

Divisions and Branches

Parts of a company that operate semi-independently but are not separate legal entities; branches are local offices or shops, while divisions are specialized departments.