If the Dollar Appreciates Relative to Foreign Currencies, We Would

question 31

Multiple Choice

If the dollar appreciates relative to foreign currencies, we would expect

• A)the multiplier to decrease.
• B)a country's exports and imports to both fall.
• C)a country's net exports to rise.
• D)a country's net exports to fall.

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Definitions:

Earnings Per Share

A profitability metric that measures the amount of net income earned per share of a company's outstanding stock.

Dividends Per Share

The amount of dividend a company pays out for each share of its stock over a specific period, typically a quarter or year.

Net Income

The total profit or loss a company generates from its operations, calculated as revenues minus expenses, taxes, and additional costs.

Cash Dividend

A payment made by a corporation to its shareholders, the amount of which is determined by the company's board of directors, and is usually distributed in cash based on the profits earned.