If Currency Depreciates

question 167

Multiple Choice

If currency depreciates,

• A)net exports rise and the aggregate demand curve shifts inward.
• B)net exports rise and the aggregate demand curve shifts outward.
• C)net exports fall and the aggregate demand curve shifts inward.
• D)net exports fall and the aggregate demand curve shifts outward.

---

Definitions:

Percent of Receivables Method

An accounting method used to estimate the amount of accounts receivable that will not be collected by calculating a percentage of receivables deemed uncollectible.

Uncollectible Accounts Receivable

Accounts from customers that are considered unrecoverable, leading to a write-off as a bad debt expense.

Allowance

A reduction from the gross amount of an asset or liability, created to account for potential future adjustments such as doubtful debts or returns.

Processing Fee

A charge assessed for processing a transaction, application, or request, common in financial services.