If the US Dollar Depreciates, Other Things Being Equal

question 52

Multiple Choice

If the U.S. dollar depreciates, other things being equal:

• A) the U.S. financial account is in surplus.
• B) exports from the United States to other countries will decrease.
• C) it falls in value against some other currency.
• D) the U.S. current account is in deficit.

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Definitions:

Anticipatory Breach

An act where one party ahead of time indicates that they will not fulfill their contractual obligations, allowing the other party to consider the contract broken.

Loss Apportionment

The process of dividing the responsibility for financial losses among different parties, typically in accordance with their fault or liability.

Frustration Availability

Refers to situations where the doctrine of frustration can be applied to release parties from their contractual obligations.

Costly Performance

Refers to situations where fulfilling the terms of a contract or agreement involves significant expense.