Everything Else Being Equal,a Depreciation of the Dollar Will Cause

question 17

Multiple Choice

Everything else being equal,a depreciation of the dollar will cause ________.

• A) the U.S. GDP to fall
• B) the U.S. GDP to increase
• C) the U.S. inflation rate to decrease
• D) the net exports of the United States to decrease

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Definitions:

Utility

The satisfaction received from consumption; sense of well-being.

Satisfaction

The feeling of pleasure or fulfillment that comes from meeting one's needs or expectations.

Real Wages

Wages adjusted for inflation, reflecting the actual purchasing power of income.

Opportunity Cost

Opportunity cost represents the value of the best alternative that must be forgone as a result of choosing a particular action or decision over others.