If People in the United States Buy More of a Foreign

question 229

Multiple Choice

If people in the United States buy more of a foreign good when its price falls, then

• A) the demand curve for U.S. dollars will slope up.
• B) the supply curve for U.S. dollars will slope up.
• C) the exchange rate will increase when there is inflation.
• D) fixed exchange rates will make foreign exchange markets more efficient.

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Definitions:

Value Basis

The underlying worth of an asset from which sale prices or depreciation is derived.

Joint Costs

Costs that are incurred from producing two or more products at the same time.

Intermediate Calculations

Steps or computations performed within a larger mathematical, financial, or statistical process that are necessary for reaching the final result.

Controllable Costs

Expenses that a manager or business can influence or manage directly, such as supplies, marketing expenses, and staff wages.