As the Exchange Rate ________, the Quantity Supplied of U

question 148

Multiple Choice

As the exchange rate ________, the quantity supplied of U.S.dollars ________.

• A) rises; increases
• B) falls; increases
• C) falls; remains the same because it is the supply of U.S.dollars decreases so that the supply curve shifts leftward
• D) rises; decreases
• E) rises; remains the same because it is the supply of U.S.dollars increases so that the supply curve shifts rightward

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Definitions:

Purchase Allowance

Purchase allowance is a reduction in the purchase price, granted by the seller to the buyer, often due to defects in goods or discrepancies in the order.

Sales Discount

A reduction from the listed price of goods or services, offered by sellers to buyers under specific conditions.

Gross Profit

The difference between revenue and the cost of goods sold before accounting for certain other costs such as salaries, administrative expenses, and taxes.

Credit Terms

The conditions under which credit will be extended to a customer, including the repayment time frame and any applicable interest or discounts for early payment.