All Other Things Unchanged, an Increase in the Value of the Dollar

question 126

Multiple Choice

All other things unchanged, an increase in the value of the dollar against the euro _____ U.S. net exports and shifts the aggregate demand curve to the _____.

• A) increases; right
• B) decreases; right
• C) increases; left
• D) decreases; left

---

Definitions:

Intercompany Sale

The sale of goods or services between divisions or subsidiaries within the same parent company.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.

Effective Tax Rate

The average percentage that companies or individuals pay in taxes on their total income.

Goodwill

An intangible asset representing the excess of purchase price over the fair market value of identifiable assets and liabilities acquired in a business combination.