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:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services, often used to allocate labor costs to products.

Overhead

All indirect costs of running a business that are not directly associated with the production of goods or services, such as rent, utilities, and administrative salaries.

Direct Labor

The wages and benefits paid to employees who directly manufacture or produce the products of a company.

Labor Costs

The total expenses that a company incurs due to the employment of staff, including wages, benefits, and taxes.