Suppose the Dollar Is Subject to a Floating Exchange Rate

question 39

Multiple Choice

Suppose the dollar is subject to a floating exchange rate system and that R is the number of dollars per unit of foreign exchange.If R increases,then the dollar

• A)depreciates.
• B)appreciates.
• C)is devalued.
• D)is revalued.
• E)Both A and C.

---

Definitions:

Fringe Benefits

Additional non-wage compensation provided to employees, such as health insurance, retirement plans, and paid time off.

Individual Performance

The level of output or success achieved by a single person in their professional duties, often assessed in terms of quality, quantity, and timeline adherence.

Organizational Hierarchy

A system within a company or organization that ranks positions in an ascending order of authority and responsibility.

Flexible Benefit Plans

These are employee benefit programs that allow workers to choose from a range of benefits to tailor their compensation package to their personal needs and preferences.