An Overvalued Dollar Makes U.S

question 81

Multiple Choice

An overvalued dollar makes U.S.

• A) imports rise in price.
• B) exports rise in price.
• C) monetary policy expansionary.
• D) fiscal policy contractionary.

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Definitions:

Pure Play Approach

Use of a WACC that is unique to a particular project.

WACC

Weighted Average Cost of Capital; a measure of a firm's cost of capital where each category of capital is proportionately weighted.

Capital

Refers to financial assets or their financial value, as well as the tangible factors of production that are used to create other goods and services.

After-Tax Cost

The actual cost of an expense or investment after taking into account the effects of taxes.