If the U.S.real Exchange Rate Appreciates,U.S.exports

question 33

Multiple Choice

If the U.S.real exchange rate appreciates,U.S.exports

• A)increase and U.S.imports decrease.
• B)decrease and U.S.imports increase.
• C)and U.S.imports both increase.
• D)and U.S.imports both decrease.

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Definitions:

Break-Even Sales

The amount of revenue from sales that equals the sum of the fixed and variable costs of production, resulting in zero net profit or loss.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range.

Variable Cost

Costs that vary directly with the level of production or volume of goods and services produced.

Sales Mix

Sales mix is the proportion of different products or services that a company sells, impacting its overall profitability and strategic market positioning.