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

question 220

Multiple Choice

All other things unchanged, a decrease in the value of the dollar against the euro _____ U.S. net exports and shifts the aggregate demand curve to the _____.

• A) increases; right
• B) decreases; right
• C) increases; left
• D) decreases; left

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Definitions:

Variable Expenses

Expenses that change in proportion to the activity of a business.

Financial Advantage

A benefit gained in financial terms, which can result from factors such as cost savings, investment returns, or other monetary gains.

Outside Supplier

An external organization that provides goods or services to another company.

Variable Costs

Charges that fluctuate in accordance with the scale of production or total volume produced.