According to the Text, Other Things Being Equal, Stock Prices

question 75

Multiple Choice

According to the text, other things being equal, stock prices of U.S. firms primarily involved in exporting could be ____ affected by a weak dollar. Stock prices of U.S. importing firms could be ____ affected by a weak dollar.

• A)adversely; favorably
• B)favorably; adversely
• C)favorably; favorably
• D)adversely; adversely

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Definitions:

Direct Labor

The labor costs directly tied to the production of goods, including wages of workers actively engaged in manufacturing.

Variable Costs

Costs that change in proportion to the level of production or sales activity.

Sunk Cost

A cost that has already been incurred and cannot be recovered or changed.

Period Cost

Expenses on the income statement that are not directly tied to the production of goods, including sales, administration, and other overhead costs.