Consider a U

question 68

Multiple Choice

Consider a U.S.-based MNC with a wholly-owned Italian subsidiary. Following a depreciation of the dollar against the euro, which of the following conclusions are correct?

• A)The cash flow in euro could be altered due an alteration in the firm's competitive position in the marketplace.
• B)A given operating cash flow in euro will be converted to a higher U.S. dollar cash flow.
• C)Both a and b
• D)None of the above

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Definitions:

Interest Rates

The cost of borrowing money or the return on saved money, usually expressed as a percentage of the amount borrowed or saved.

Investment

Investment is the act of allocating resources, usually money, with the expectation of generating an income or profit.

Short-Run Aggregate-Supply

A variation in phrasing to describe the responsiveness of the quantity of goods and services produced by an economy to a change in price level in the short term.

Output

The total amount of goods and services produced by an economic system.