If Global Trade Experts Predict That the Value of the Dollar

question 123

Multiple Choice

If global trade experts predict that the value of the dollar will soon fall, it will result in

• A) both the prices of imported goods rising and prices of U.S. goods sold overseas rising, as well.
• B) prices of imported goods rising, but prices of U.S. goods sold overseas falling.
• C) prices of imported goods falling and prices of U.S. goods sold overseas falling, as well.
• D) prices of imported goods falling, but prices of U.S. goods sold overseas rising.

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Definitions:

Federal Government

The federal government refers to the national government of a country that is responsible for enacting and enforcing laws, collecting taxes, and managing the country’s affairs.

Defense Spending

Government expenditure on military forces and activities, including salaries, benefits, weapons systems, and operations.

Social Security

A government program that provides financial assistance to people with inadequate or no income, particularly the elderly, disabled, and families with dependent children.

Property Tax

A levy on property that the owner is required to pay, typically based on the value of the property.