If One Dollar Is Initially Equal in Value to One

question 153

Multiple Choice

If one dollar is initially equal in value to one euro and demand for euros increases, then each dollar will be worth

• A)more than one euro, and European imports will be cheaper in the United States
• B)less than one euro, and European imports will be more expensive in the United States
• C)more than one euro, and European imports will be more expensive in the United States
• D)less than one euro, and European imports will be cheaper in the United States
• E)the same as the euro, and there will be no change in the values of imports or exports

---

Definitions:

GE/McKinsey

A strategic business tool developed by McKinsey & Company for General Electric to evaluate business portfolio and make investment decisions.

Resource Allocations

The process of assigning and managing assets in a manner that supports an organization's strategic goals.

Product Innovation

The process of bringing new, improved products or services to market or introducing unique features to existing products.

Peter Drucker

A highly influential thinker and writer on management theory and practice, known for his contributions to the modern business corporation.