A Stronger Dollar Leads to Cheaper Input Prices for U

question 89

Multiple Choice

A stronger dollar leads to cheaper input prices for U.S. firms because

• A) U.S. workers are willing to work for less pay because of the stronger dollar.
• B) U.S. producers of intermediate goods lower prices in order to benefit from the stronger dollar.
• C) imports of raw materials and intermediate goods are cheaper.
• D) exports of raw materials and intermediate goods are cheaper.

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Definitions:

Disintegration

The process of breaking down or dissolving, which in psychological terms can refer to the disorganization or fragmentation of thought processes.

Foresee

The ability to anticipate or predict future events or outcomes based on current knowledge or insights.

Disruption

An interruption or disturbance that challenges the normal course or functioning of something, often leading to innovative solutions or changes.

Cluster

A group of similar things or people positioned or occurring closely together.