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.

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Definitions:

Service Revenue

Revenue received by a business from the services it offers to its clients.

Normal Balance

The side of an account, whether debit or credit, where increases in the account are recorded, determined by the account's classification in the accounting equation.

Capital Account

A national account that shows the net change in asset ownership for a country.

Revenue Account

An account that tracks the income earned from a company's primary operations.