Other Things the Same,if the U.S.price Level Rises,then

question 48

Multiple Choice

Other things the same,if the U.S.price level rises,then

• A)the supply of dollars in the market for foreign-currency exchange increases,so the exchange rate rises.
• B)the supply of dollars in the market for foreign-currency exchange increases,so the exchange rate falls.
• C)the supply of dollars in the market for foreign-currency exchange decreases,so the exchange rate rises.
• D)the supply of dollars in the market for foreign-currency exchange decreases,so the exchange rate falls.

---

Definitions:

Average Fixed Cost

Average Fixed Cost refers to the total fixed costs (costs that do not change with the level of output) divided by the quantity of output produced. It decreases as production increases.

Total Variable Cost

The total of expenses that vary directly with the level of production, such as raw materials and direct labor.

Marginal Product

The additional output resulting from the use of one more unit of a production input, keeping other inputs constant.

AVC

Average Variable Cost, which is the total variable costs divided by the quantity of output produced.