If a Foreign Currency _____ Relative to the U

question 67

Multiple Choice

If a foreign currency _____ relative to the U.S.dollar,Americans will pay less for goods and services bought from sellers in the country that issues the currency.

• A)goes up
• B)goes down
• C)varies
• D)is unstable

---

Definitions:

Increasing-Cost Industry

Industry whose long-run supply curve is upward sloping.

Output Tax

A tax levied on the production or output of goods and services, often implemented to regulate or diminish the production of certain products.

Cost And Supply Curves

Graphical representations that show how the cost of producing a good and the quantity supplied vary with quantity produced.

Constant-Cost Industry

An industry in which the costs of production do not change as the industry's output changes.