Which of the Following Could Be a Consequence of a Depreciation

question 21

Multiple Choice

Which of the following could be a consequence of a depreciation of the U.S. real exchange rate?

• A)John, a French citizen, decides that Iowa pork has become too expensive and cancels his order.
• B)Nick, a U.S. citizen, decides that the trip to Nepal he's been thinking about is now made affordable by the depreciation.
• C)Roberta, a U.S. citizen, decides to import fewer windshield wipers for her auto parts company.
• D)All of the above are correct.

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Definitions:

Net Income

A company's overall earnings post-deduction of every expense and tax from its total income.

Net Income

The amount of total revenues minus total expenses, representing the profit a company has generated over a specific period.

Bonus

Additional compensation given to employees or executives beyond their regular salary, often as a reward for achieving certain performance targets.

Pre-bonus Income

The total revenue or profit earned by an individual or entity before any bonuses are issued or calculated.