Which of the Following Is Consistent with a Depreciation of the Dollar

question 71

Multiple Choice

Which of the following is consistent with a depreciation of the dollar?

• A)Canadian goods become less expensive relative to foreign goods, which makes exports rise and imports fall.
• B)Canadian goods become less expensive relative to foreign goods, which makes exports fall and imports rise.
• C)Canadian goods become more expensive relative to foreign goods, which makes exports rise and imports fall.
• D)Canadian goods become more expensive relative to foreign goods, which makes exports fall and imports rise.

---

Definitions:

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earnings investors can expect from owning the stock.

Liabilities

Financial obligations or debts that a company owes to others, which must be repaid.

Closed-end Investment

An investment fund that has a fixed number of shares outstanding, typically traded on a stock exchange, unlike open-end funds that can issue unlimited shares.

NAV

Net Asset Value, the per-share value of a mutual fund or exchange-traded fund, calculated by dividing the total value of all the securities in the portfolio by the number of shares outstanding.