If the Value of the Dollar Appreciates in the Foreign

question 22

Multiple Choice

If the value of the dollar appreciates in the foreign exchange market:

• A)net exports will increase.
• B)net exports will decrease.
• C)net exports will be unaffected.
• D)It is impossible to say how net exports will be affected without knowing how net capital outflow is affected.

Analyze the effects of international transactions on a country's GDP.

Comprehend the basics of the circular-flow diagram in economic modeling.

Analyze economic behavior using basic supply and demand tools in the context of GDP.

Understand the concept and components of Gross Domestic Product (GDP) and its importance as an economic measure.

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Definitions:

Legal Risk

The potential for losses or damages resulting from legal proceedings, actions, or changes in law.

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, such as an employer being responsible for the acts of its employees.

Strict Liability

A legal principle where responsibility for damages is assigned without the need to prove negligence or fault.

Duty of Care

A legal obligation imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could harm others.