If the United States Has a Consistent Trade Deficit with Another

question 79

Multiple Choice

If the United States has a consistent trade deficit with another country (we import more from it than we export to it) , the US dollar will ____ against that country's currency.

• A)strengthen
• B)weaken
• C)either a or b can happen
• D)neither a nor b is likely to happen

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Definitions:

LIFO Cost Flow Assumption

An inventory valuation method that assumes the most recently produced or acquired items are sold first, last-in, first-out.

FIFO

First In, First Out, an inventory valuation method where the first items placed in inventory are the first sold.

Specific Identification

An inventory valuation method wherein the costs of individual inventory items are tracked and used to determine the cost of goods sold.

Retail Industry

A sector that consists of businesses selling consumer goods directly to customers, involving a range of stores and online platforms offering merchandise from food to fashion.