A Depreciation of the U

question 43

Multiple Choice

A depreciation of the U.S. dollar makes American goods cheaper relative to foreign goods,resulting in a ________ in net exports in the U.S. and a ________ shift of the IS curve in the U.S. ,everything else held constant.

• A)fall;leftward
• B)rise;leftward
• C)fall;rightward
• D)rise;rightward

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Definitions:

Semi-Strong Efficiency

A form of market efficiency where asset prices fully reflect all publicly available information.

Public Information

Data or knowledge that is available to the general public, not restricted by confidentiality or privacy laws.

Market Prices

Market prices are the current prices at which goods, services, or financial assets can be bought or sold in a marketplace.

Market Prices

The current value or cost of a commodity, security, or service as determined by supply and demand in the open market.