If the USDollar Decreases in Value Relative to Other Currencies,how Does This

question 168

Multiple Choice

If the U.S.dollar decreases in value relative to other currencies,how does this affect the aggregate demand curve?

• A)This will move the economy up along a stationary aggregate demand curve.
• B)This will move the economy down along a stationary aggregate demand curve.
• C)This will shift the aggregate demand curve to the left.
• D)This will shift the aggregate demand curve to the right.

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Definitions:

Debt-Equity Ratio

A ratio indicating a firm's financial leverage, determined by dividing its total debts by its shareholder equity.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its customers by dividing total net credit sales by the average accounts receivable.

Net Working Capital

This is a measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold, or used up within one year or within the normal operating cycle of the business, whichever is longer.