If a Country's Budget Deficit Rises,then Its Exchange Rate

question 85

Multiple Choice

If a country's budget deficit rises,then its exchange rate

• A)rises,so its imports rise.
• B)rises,so its imports fall.
• C)falls,so its imports rise.
• D)falls so its imports fall.

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Definitions:

Marginal Product

The additional output produced by using one more unit of a given input, holding all other inputs constant.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as the production volume varies.

Short-Run Marginal Cost

The change in total cost associated with producing one additional unit of output, considering some inputs are fixed.

Embryonic Disk

A key structure in early embryonic development from which the embryo begins to form.