If the Value of the U

question 8

Multiple Choice

If the value of the U.S.dollar rises from € 1.0 per dollar to € 1.3 per dollar,

• A) imports of automobiles from Germany will decline
• B) American inflation will increase
• C) German exports of all traded goods will decline
• D) American exports to Germany will decrease
• E) sales by American manufacturers for the export markets will increase.

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Definitions:

Common Currency

A currency that is used by multiple countries, facilitating easier trade and financial transactions between them.

Economic Reasons

The financial or monetarily driven considerations and motivations influencing decisions, policies, or behaviors in an economic context.

Offshoring

The relocation of business processes or manufacturing to a foreign country, typically to leverage lower costs or other benefits.

Infant Industry

A new or emerging industry that may be protected by the government from international competition to allow it to grow and establish itself.