If the Exchange Rate Changes So That More Mexican Pesos

question 144

Multiple Choice

If the exchange rate changes so that more Mexican pesos are required to buy a dollar, then

• A) the peso has appreciated in value.
• B) Americans will buy more Mexican goods and services.
• C) more U.S. goods and services will be demanded by the Mexicans.
• D) the dollar has depreciated in value.

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Definitions:

UCC Balance

The outstanding balance on a loan or financing arrangement under the Uniform Commercial Code, often related to personal property loans.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income, thus lowering the overall tax liability.

Capital Cost Allowance (CCA)

A tax deduction in Canada that represents a business's investment in depreciable properties, allowing for the asset's cost to be written off over its useful life.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax is owed to the government in a given tax year.