A Devaluation Causes Which of the Following to Occur in the Medium

question 8

Multiple Choice

A devaluation causes which of the following to occur in the medium run?

• A)an increase in net exports
• B)an increase in the price level
• C)an increase in output
• D)all of the above
• E) none of the above

---

Definitions:

Cost of Equity

This refers to the return a company is expected to offer investors to compensate for the risk they take by holding its stock.

ABC Approach

A methodology used in inventory management and cost accounting that identifies and classifies items in order of importance, with A items being the most valuable.

Inventory Management

The process of ordering, storing, and using a company's inventory, including the management of raw materials, components, and finished products.

Inventory Cost

The total cost associated with holding and managing inventory, including purchase, storage, and obsolescence costs.