An Easy Money Policy Will Cause the Dollar to

question 47

Multiple Choice

An easy money policy will cause the dollar to

• A)depreciate and will increase American net exports.
• B)depreciate and will decrease American net exports.
• C)appreciate and will increase American net exports.
• D)appreciate and will decrease American net exports.

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Definitions:

Marginal Costs

The expense incurred from manufacturing an extra unit of a product or service.

Average Total Costs

The total costs (fixed and variable) of production divided by the quantity of output produced.

Average Fixed Costs

The total fixed costs divided by the quantity of output produced, indicating the cost per unit that does not change with output level.

Average Total Costs

The cost of producing each unit, calculated by dividing the entire production cost by the total number of units made.