If the U.S. Dollar Appreciates

question 38

Multiple Choice

If the U.S. dollar appreciates,

• A) an MNC's U.S. sales will probably decrease.
• B) an MNC's exports denominated in U.S. dollars will probably increase.
• C) an MNC's interest owed on foreign funds borrowed will probably increase.
• D) an MNC's exports denominated in foreign currencies will probably increase.
• E) all of the above

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Definitions:

Sum of Squares

A statistical technique used to describe the total variation in a dataset.

Error

The difference between a measured or observed value and the true value of the quantity of interest.

Normal Probability Distribution

A continuous probability distribution. Its probability density function is bell-shaped and determined by its mean m and standard deviation s.

Variance

The measure of how spread out numbers are in a dataset, calculated as the average of the squared differences from the mean.