A Stronger Dollar Leads to Lower Input Prices for U

question 4

Multiple Choice

A stronger dollar leads to lower input prices for U.S. firms because

• A) U.S. workers are willing to work for less pay because of the stronger dollar.
• B) U.S. producers of intermediate goods lower prices in order to benefit from the stronger dollar.
• C) both imports of raw materials and intermediate goods are lower in prices.
• D) both exports of raw materials and intermediate goods are lower in prices.

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Definitions:

Price

The expenditure required to procure a good, service, or asset.

Income

The amount of money received by an individual or entity over a specified period, usually through employment, business, or investments.

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers.

Income

Financial gains accrued from work or investments over time.