Other Things the Same,if the U

question 105

Multiple Choice

Other things the same,if the U.S.real exchange rate depreciated,then U.S.net exports would

• A)fall and the quantity of dollars demanded in the market for foreign-currency exchange would fall.
• B)fall and the quantity of dollars demanded in the market for foreign-currency exchange would rise.
• C)rise and the quantity of dollars demanded in the market for foreign-currency exchange would fall.
• D)rise and the quantity of dollars demanded in the market for foreign-currency exchange would rise.

---

Definitions:

Equipment

Assets used in the operations of a business that have a longer-term use, such as machinery, office furniture, and computers, which are subject to depreciation over their useful lives.

Free Cash Flow

Cash generated by a company after accounting for operating expenses and capital expenditures, available for investment or distribution.

Direct Method

An accounting method used to prepare the cash flow statement, which shows actual cash inflows and outflows from operating activities.

Operating Expenses

Expenditures that a business incurs through its normal business operations, such as rent, utilities, and salaries, excluding production costs.