Which of the Following Would Cause the Real Exchange Rate

question 12

Multiple Choice

Which of the following would cause the real exchange rate of the U.S.dollar to appreciate?

• A)the U.S.government budget deficit decreases
• B)capital flight from the U.S.
• C)the U.S.imposes import quotas
• D)None of the above is correct.

Apply discount rates to cash flows to determine the present value in capital budgeting.

Understand and calculate the payback period for an investment.

Understand and calculate the simple rate of return for an investment.

Evaluate the financial attractiveness of investments considering different aspects like intangible benefits, tax implications, renovation costs, and depreciation.