A Currency Appreciation Will Be Most Likely to

question 60

Multiple Choice

A currency appreciation will be most likely to

• A) reduce net exports and therefore increase aggregate demand.
• B) raise net exports and therefore decrease aggregate demand.
• C) reduce net exports and therefore decrease aggregate demand.
• D) raise net exports and therefore increase aggregate demand.

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Definitions:

Direct Method

An approach in cost accounting that traces costs directly to cost objects without distributing indirect costs.

Inventories

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the future.

Accounts Payable

Liabilities to creditors that must be paid within a short period, usually less than a year.

Operating Activities

Activities that constitute the primary or main activities of an organization, including production, sales, and delivery of services.