Use the Following to Answer Questions

question 27

Multiple Choice

Use the following to answer questions
Figure: Exchange Rate Shifts
-(Figure: Exchange Rate Shifts) When demand for U.S.goods increases,the U.S.dollar will _____,and the equilibrium exchange rate will shift from _____ to _____.

• A) depreciate;e₁;e₀
• B) depreciate;e₀;e₁
• C) appreciate;e₀;e₁
• D) appreciate;e₁;e₀

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Definitions:

Common Shares

Shares of ownership in a corporation that grant holders voting rights and a residual claim on the corporation's assets and earnings.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt, selling stock, or paying dividends.

Issue of Shares

Refers to the process by which a corporation issues new shares of stock to raise capital, often to expand or to undertake new projects.

Direct Method

A way of reporting cash flows from operating activities by listing major classes of gross cash receipts and payments.