Which of the Following Is NOT a Result of a Permanent

question 97

Multiple Choice

Which of the following is NOT a result of a permanent fall in foreign demand on one country's exports under floating exchange rate?

• A) The DD curve shifts to the left due to reduction of aggregate demand.
• B) The AA curve shifts upwards due to the increased expected long-run exchange rate.
• C) a reduction in output by a smaller degree compared to temporary fall in demand
• D) depreciation in home country's currency
• E) a raised level of unemployment

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health.

Accounts Receivable

Debts owed by customers to a business for products or services provided but not yet compensated for.

Accounts Payable

The amount of money that a company owes to its creditors for goods or services that it has received but not yet paid for.

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, representing the individual's tax bracket.