If the Dollar Appreciates Relative to Foreign Currencies, Then

question 267

Multiple Choice

If the dollar appreciates relative to foreign currencies, then

• A) U.S. goods will look cheaper to foreign buyers.
• B) foreign goods will look more expensive to U.S. buyers.
• C) net exports of the U.S. will increase.
• D) foreign buyers will find U.S. goods have become more expensive.

---

Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level.

Direct Labor

The wages or salaries paid to employees who are directly involved in producing goods or providing services.

Electric Power

Electric power is the rate at which electrical energy is transferred by an electric circuit, commonly utilized for domestic, commercial, and industrial activities.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term, such as rent or salaries.