If the Goods' Money Prices Do Not Change,a Depreciation of the Dollar

question 71

Multiple Choice

If the goods' money prices do not change,a depreciation of the dollar against the pound

• A)makes British sweaters cheaper in terms of American jeans.
• B)makes British sweaters more expensive in terms of American jeans.
• C)makes American jeans more expensive in terms of British sweaters.
• D)doesn't change the relative price of sweaters and jeans.
• E)makes British jeans more expensive in Britain.

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Definitions:

Retained Earnings

The amount of net earnings remaining for the company after distributing dividends to its shareholders.

Shareholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.

Appropriations

The act of setting aside funds for a specific purpose, often used in government budgeting.

Contra-Asset

An account on a company's balance sheet that reduces the value of related, primary asset accounts.