When the Dollar Depreciates, the Prices of Imported Inputs

question 10

Multiple Choice

When the dollar depreciates, the prices of imported inputs

• A)fall and aggregate supply shifts outward.
• B)fall and aggregate supply shifts inward.
• C)rise and aggregate supply shifts outward.
• D)rise and aggregate supply shifts inward.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit.

Consumer Surplus

The difference in the total amount expected to be paid by consumers for a good or service and the actual payment made.

Willingness to Pay

Willingness to Pay is the maximum amount an individual or organization is ready to spend to procure a product or service, reflecting the value they attach to it.