From 1975 to 1995, the Value of the Dollar in Terms

question 149

Multiple Choice

From 1975 to 1995, the value of the dollar in terms of yen fell from over 300 yen per dollar to about 100 yen per dollar. Considering the impact of this alone, this would likely:

• A)shift the U.S. AD curve to the left.
• B)shift the U.S. AD curve to the right.
• C)make the U.S. AD curve flatter.
• D)make the U.S. AD curve steeper.

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Definitions:

Accounts Receivables

Money owed to a company by customers who have purchased goods or services on credit.

Insolvent

The state of being unable to pay off debts as they come due, having liabilities exceed assets.

Receivables

Money owed to a business or an individual for goods or services provided on credit.

Cash-to-cash Cycle

The time period between when a business pays for its inventory and when it receives cash from the sale of that inventory.