The Soaring (Appreciating) Value of the Trade-Weighted Dollar in the Early

question 58

Multiple Choice

The soaring (appreciating) value of the trade-weighted dollar in the early 1980s

• A) was caused by relatively low interest rates in the United States.
• B) decreased the international competitiveness of American exporters.
• C) resulted in Americans importing fewer goods and services.
• D) increased the demand for American exports of goods and services.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Variable Cost

A cost that depends on the level of production chosen.

Marginal Revenue

The incremental gain in revenue achieved by a company for selling an additional unit of product or service.