If Foreigners Suddenly Reduced Their Investments in the United States

question 42

Multiple Choice

If foreigners suddenly reduced their investments in the United States, what would happen?

• A) The value of the dollar on foreign exchange markets would increase.
• B) The action would have no impact on the U.S. economy.
• C) The foreigners would sell U.S. dollars for another currency.
• D) The price of U.S. exports would increase.

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Definitions:

Factory

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Australian Accounting Standards

A set of principles and rules that guide financial reporting and accounting practices in Australia.

Departmental Production Report

A document that tracks the output, efficiency, and costs of a specific department within a manufacturing facility.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.