Other Things Equal, Under a Floating Exchange Rate System, If

question 1

Multiple Choice

Other things equal, under a floating exchange rate system, if American exports increase and American imports decrease, the value of the dollar will likely

• A) appreciate.
• B) depreciate.
• C) be officially revalued.
• D) neither appreciate not depreciate.

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Definitions:

Department Store

A large retail store offering a wide variety of goods organized into departments.

Responsibility Centers

Entities within an organization responsible for controlling revenue and expenses, influencing the operational and financial results.

Cost Centers

Parts of an organization where costs can be identified and directly attributed, but which do not directly generate revenue.

Profit Centers

Parts of an organization that directly contribute to its profit through their operations and are responsible for their own revenues and costs.