Which of the Following Could Be a Consequence of a Depreciation

question 21

Multiple Choice

Which of the following could be a consequence of a depreciation of the U.S. real exchange rate?

• A)John, a French citizen, decides that Iowa pork has become too expensive and cancels his order.
• B)Nick, a U.S. citizen, decides that the trip to Nepal he's been thinking about is now made affordable by the depreciation.
• C)Roberta, a U.S. citizen, decides to import fewer windshield wipers for her auto parts company.
• D)All of the above are correct.

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Definitions:

Positive Checks

Factors that increase mortality rates, such as disease, starvation, and war, traditionally discussed in the context of population control theories.

Thomas Malthus

An English economist and demographer best known for his theory that population growth will outpace agricultural production, leading to widespread poverty and societal collapse unless checked by factors like famine, disease, or war.

Population Growth

The increase in the number of individuals in a population, measured by natural growth (births minus deaths) and net migration.

Communist Ideology

A socio-political ideology advocating for a classless society in which all property and means of production are communally owned, aiming to eliminate social inequalities.