From the U

question 19

Multiple Choice

From the U.S.perspective, a drop in the price of foreign exchange means that

• A)fewer U.S.dollars are needed to purchase foreign currency
• B)more U.S.dollars are needed to purchase foreign currency
• C)worldwide, imports will become more expensive
• D)worldwide, exports will become cheaper
• E)transaction costs on international markets will decrease

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Definitions:

Coal-Powered

Refers to machines, plants, or devices that operate or are fueled by coal.

Electrical Generator

A device that converts mechanical energy into electrical energy, typically through rotating a coil within a magnetic field.

Externality

A cost or benefit arising from an economic activity that affects third parties who did not choose to incur that cost or benefit.

Incentive

Something that motivates or encourages an individual or entity to act in a certain way.