If the USDollar Depreciates in the Foreign Exchange Market,American Exports Will _____

question 102

Multiple Choice

If the U.S.dollar depreciates in the foreign exchange market,American exports will _____ and American imports will _____.

• A)be more expensive;be more expensive
• B)be more expensive;be less expensive
• C)be less expensive;be less expensive
• D)be less expensive;be more expensive
• E)decrease;increase

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Definitions:

Accounting Degrees

Formal educational programs that prepare individuals in the principles, techniques, and ethics of managing and reporting financial information.

Substitution Effect

A shift in buying habits triggered by variations in the comparative costs of products, prompting consumers to switch their preferences from one product to another.

Income Effect

The income effect describes the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Income Effect

The change in consumption resulting from a change in real income, with real income typically changing due to changes in prices.