All Else Being Equal,an Increase in the U

question 57

Multiple Choice

All else being equal,an increase in the U.S.demand for foreign goods causes the supply of dollars to ________ and the dollar will ________ relative to foreign currencies.

• A) increase; appreciate
• B) increase; depreciate
• C) decrease; appreciate
• D) decrease; depreciate

---

Definitions:

Factory Overhead

All indirect costs associated with the manufacturing process, including utilities, depreciation, and wages for support staff that are not directly involved in production.

Direct Labor

The cost of wages and benefits for workers who are directly involved in the production of goods or the provision of services.

Finished Goods Inventory

Inventory of finished goods available for sale but not yet purchased by customers.

Factory Overhead

Indirect costs associated with manufacturing operations, such as utilities, maintenance, and salaries of supervisory personnel.