Rising Income in the United States Triggers an Increased Demand

question 38

Multiple Choice

Rising income in the United States triggers an increased demand for imports.This causes:

• A) an increase in the demand for foreign currency
• B) decrease in the demand for foreign currency
• C) an increase in the supply of foreign currency
• D) a decrease in the supply of foreign currency

---

Definitions:

Marginal Costs

The cost incurred by producing one additional unit of a good or service.

Quantity Of Output

The total amount of product or service produced by a company during a given period.

Production Expenses

Costs incurred in the process of manufacturing or producing goods and services.

Variable Cost Estimate

An approximation of the costs that vary in direct proportion to the volume of output or production, such as materials and labor.