A Weak US Dollar Makes U

question 94

Multiple Choice

A weak U.S. dollar makes U.S. goods ________, which, in theory, should ________ the U.S. trade deficit.

• A) less expensive; reduce
• B) more expensive; reduce
• C) less expensive; increase
• D) more expensive; increase
• E) neither more expensive nor less expensive; have no effect on

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Definitions:

Marginal Tax Rate

The rate of tax applied to the last dollar of income, used to determine how much tax will be owed on an additional dollar of income.

Operating Cash Flow

An indicator of the cash produced through a company's regular business activities.

Interest Expense

The financial charge an organization incurs over a period for taking out loans.

Operating Cash Flow

This measures the cash generated by a company's normal business operations, indicating whether it is capable of maintaining and growing its operations.