If the Canadian Real Exchange Rate Appreciates,which of the Following

question 121

Multiple Choice

If the Canadian real exchange rate appreciates,which of the following will most likely happen?

• A)Net exports increase, and net capital outflow decreases.
• B)Net exports decrease, and net capital outflow increases.
• C)Net exports and net capital outflow both increase.
• D)Net exports and net capital outflow both decrease.

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Definitions:

Cost Curves

Graphs that depict how the costs of production vary with changes in output, including total cost, average cost, and marginal cost curves.

Profit-maximizing

The method or tactic of modifying output and setting prices to maximize profits.

ATC

It refers to dividing the entire cost of production by the number of units produced to get the Average Total Cost.

AVC

The variable cost for each unit of production, known as Average Variable Cost.