In Late 2014 and 2015 the Value of the U

question 275

Multiple Choice

In late 2014 and 2015 the value of the U.S.dollar increased relative to the currencies of most of its major trading partners.This rise in the price of the dollar against the other currencies was ________ for companies that exported to the United States and ________ for U.S.companies that exported to other countries.

• A)good;good
• B)bad;good
• C)good;bad
• D)bad;bad

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Definitions:

Keynesian Theory

An economic theory positing that government intervention through fiscal policy can affect the level of economic activity and mitigate the effects of recessions.

Output and Employment

The relationship between the production of goods and services in an economy and the labour force participation required to achieve this production.

Total Expenditures

Total expenditures refer to the aggregate amount of spending by an entity, covering all categories of expenses within a specific period.

Real Wealth Effect

The change in consumption patterns due to changes in purchasing power, often resulting from price level changes that affect the real value of assets and liabilities.