A Firm Produces Manufacturing Equipment, Some of Which It Exports

question 240

Multiple Choice

A firm produces manufacturing equipment, some of which it exports. Which of the following effects of a budget deficit would likely reduce the quantity of equipment it sells?

• A)the change in the interest rate and the change in the exchange rate
• B)the change in the interest rate but not the change in the exchange rate
• C)the change in the exchange rate but not the change in the interest rate
• D)neither the change in the interest rate nor the change in the exchange rate

---

Definitions:

National TV Advertising

A promotional strategy that involves broadcasting advertisements across an entire country via television, aiming to reach a wide audience.

Pull Strategy

A marketing technique aimed at creating demand for a product, prompting consumers to actively seek out the product, thereby "pulling" it through the distribution channels.

Manufacturer

An entity or individual that makes goods for sale through the use of labor, machinery, tools, and raw materials.

Neulasta

A prescription medication used to prevent infections by increasing white blood cells, commonly used in patients undergoing chemotherapy.