Suppose the Dollar Is Devalued

question 37

Multiple Choice

Suppose the dollar is devalued.If an export contract is written in dollars,then the value of U.S.exports:

• A) Decrease
• B) Increase
• C) Stay the same
• D) Not possible to answer with the given information

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Definitions:

Production Function

An equation or formula that specifies the output a firm can produce with varying combinations of inputs or factors of production.

Proportions

The relative relationship in size, quantity, or degree between two or more things.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Production Function

An equation that describes the relation between inputs used in production and the output of goods or services.