Which of the Following Could Explain a Decrease in the U.S

question 158

Multiple Choice

Which of the following could explain a decrease in the U.S. real exchange rate?

• A)the U.S. government budget deficit rises
• B)the U.S. impose import quotas
• C)the default risk of U.S. assets rise
• D)All of the above are correct.

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Definitions:

Marginal Cost

The additional expense incurred when one more unit of a product or service is created.

Average Total Cost

The total cost divided by the quantity of output produced, representing the per-unit cost of production.

Economic Losses

Financial losses incurred by businesses or the economy as a whole, often as a result of unfavorable market conditions.