One Effect of a Stronger Dollar Is

question 46

Multiple Choice

One effect of a stronger dollar is

• A) an increase in U.S. exports and a reduction in U.S. imports.
• B) a reduction in U.S. exports and an increase in U.S. imports.
• C) an increase in net exports.
• D) an increase in both imports and exports. The effect on net exports is uncertain.

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Definitions:

Inventory Levels

The quantity of products or materials a company has in stock at any given time.

Physical Inventory

The process of counting by hand all physical inventory items in a business at a specific point in time, to ensure accuracy of accounting records.

LIFO

"Last In, First Out," an inventory valuation method where the last items purchased are the first ones sold.

Inventory Profits

The increase in inventory value above its cost, typically due to price increases or valuation adjustments.