If Currency Depreciates

question 167

Multiple Choice

If currency depreciates,

• A)net exports rise and the aggregate demand curve shifts inward.
• B)net exports rise and the aggregate demand curve shifts outward.
• C)net exports fall and the aggregate demand curve shifts inward.
• D)net exports fall and the aggregate demand curve shifts outward.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values diverge from the mean.

Correlation

A statistical measure that describes the extent to which two variables change together, indicating a relationship but not causality.

Dividend Yield

A financial ratio indicating how much a company pays out in dividends each year relative to its stock price.

Total Return

The overall financial gain or loss on an investment over a specified time period, including both capital gains and interest or dividends.