If the Dollar Depreciates Relative to Other Currencies, Which of the Following

question 99

Multiple Choice

If the dollar depreciates relative to other currencies, which of the following is true?

• A)It takes more foreign currency to buy a dollar.
• B)It takes more dollars to buy a foreign currency.
• C)U.S.exports will decrease.
• D)Foreign purchases of U.S.goods will decrease.

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Definitions:

Output Effect

The impact on an organization's total output resulting from a change in price, affecting the quantity supplied or demanded.

Substitute Resource

A resource that can be used in place of another, often relevant in the context of production or environmental sustainability.

MRP Curve

The marginal revenue product curve, which shows the additional revenue generated by one additional unit of an input.

Imperfectly Competitive Market

A market structure in which participants have some control over the prices because not all conditions of perfect competition are met, such as monopolistic competition and oligopoly.