If the US Dollar Becomes Weaker in International Foreign Exchange Markets, Imported

question 51

Multiple Choice

If the U.S. dollar becomes weaker in international foreign exchange markets, imported goods become more expensive. One result of this is that

• A)net exports decrease.
• B)net exports increase.
• C)domestic employment rises.
• D)real Gross Domestic Product (GDP)increases.

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Definitions:

Autonomous Consumption

The level of consumption expenditure that occurs when income levels are zero, reflecting the basic level of consumption that does not depend on current income.

APS

An acronym for Average Propensity to Save, which is the ratio of savings to the total net disposable income.

Total Saving

The sum of personal, business, and government savings within an economy.

APS

Average Propensity to Save (APS) is the ratio of total savings to total disposable income, indicating the portion of income that households save rather than spend.