From the Perspective of the United States,an Increase in the Nominal

question 80

Multiple Choice

From the perspective of the United States,an increase in the nominal exchange rate will cause which of the following?

• A)the dollar becomes less expensive to foreigners
• B)foreign goods are more expensive to Americans
• C)foreign currency is more expensive to Americans
• D)American goods are more expensive to foreigners
• E) none of the above

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Definitions:

Purely Competitive Seller

A market participant that operates in a perfectly competitive market, where no single seller can influence prices or market conditions.

Diminishing Marginal Productivity

A principle in economics stating that as additional units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases.

MRP

Marginal revenue product, the additional revenue generated by employing one more unit of a resource.

Wage Rate

The standard amount of pay given to employees per unit of time, which may vary based on industry, occupation, and experience.