A Depreciation of the Dollar Will Have Its Most Pronounced

question 181

Multiple Choice

A depreciation of the dollar will have its most pronounced impact on imports if the demand for imports is

• A) constant.
• B) inelastic.
• C) elastic.
• D) unitary elastic.

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Definitions:

Paraguay

A landlocked country in South America known for its rich culture, history, and expansive natural landscapes, with a mixed economy that includes agriculture, manufacturing, and services sectors.

Televisions

Electronic devices designed to receive broadcast signals and display them as moving images and sound, serving as a primary source of entertainment and information.

World Price

The global market price of a commodity, determined by supply and demand dynamics across international markets.

Uruguay

A country in South America, known for its verdant interior and seaside capital, Montevideo, with a stable democracy and high levels of social spending.