If the Dollar Appreciates While Foreign Income Rises

question 189

Multiple Choice

If the dollar appreciates while foreign income rises:

• A)the U.S. AD curve would likely shift to the left.
• B)the U.S. AD curve would likely shift to the right.
• C)the U.S. AD curve would likely remain unchanged.
• D)what happens to the U.S. AD curve is unclear.

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Definitions:

Financial Statements

Reports that summarize the financial health, performance, and liquidity of a company including balance sheet, income statement, and statement of cash flows.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.

Earnings Restatements

The act of amending previously reported financial statements to correct errors.

Dividends

Payments made by a corporation to its shareholders, usually in the form of cash or additional shares, from its profits.