If Speculators Bid Up the Value of the U

question 39

Multiple Choice

If speculators bid up the value of the U.S.dollar in the market for foreign exchange,then

• A)U.S.goods become more expensive relative to foreign goods so aggregate demand shifts right.
• B)U.S.goods become less expensive relative to foreign goods so aggregate demand shifts right.
• C)U.S.goods become more expensive relative to foreign goods so aggregate demand shifts left.
• D)U.S.goods become less expensive relative to foreign goods so aggregate demand shifts left.

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Definitions:

Factory Overhead

This term refers to the indirect manufacturing costs that cannot be directly tied to specific units of production, such as maintenance, utilities, and management salaries.

Direct Materials

Raw materials that can be directly attributed to the production of a product.

Cotton

A natural fiber and a key agricultural commodity used primarily in the textile industry for making fabrics.

Internal Auditing

The independent, objective assurance and consulting activity designed to add value and improve an organization's operations, focusing on internal controls and business processes.