What Effect Does a Depreciation of the Dollar Have on Real

question 221

Multiple Choice

What effect does a depreciation of the dollar have on real GDP in the United States in the short run?

• A)Real GDP will fall.
• B)Real GDP will rise.
• C)Real GDP will be unaffected by the depreciation of the dollar.
• D)Real GDP will be unchanged,but nominal GDP will rise.

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Definitions:

Day-To-Day Operations

The routine activities that are conducted in the daily functioning of an organization or business.

Ancillary Services

Supplementary services provided by companies that are not primary to their main business but enhance or support the overall consumer experience.

Ultimate Consumer

The ultimate consumer refers to the final buyer or user of a product or service who purchases it for personal, not business, use.

For-Profit Businesses

Businesses that are primarily focused on generating profits for their owners and shareholders.