The Devaluation of a Currency Results in A(n)

question 92

Multiple Choice

The devaluation of a currency results in a(n) :

• A) initial increase in trade balance, but an eventual decline in the trade balance.
• B) permanent decline in the trade balance.
• C) permanent increase in the trade balance.
• D) initial decrease in trade balance, but an eventual increase in the trade balance.

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Definitions:

Exponents

Mathematical expressions denoting the power to which a number or variable is raised, indicating repeated multiplication.

Production Function

An equation that specifies the amount of product that can be produced from different quantities of inputs.

Returns To Scale

The rate at which production output increases as a result of a proportional increase in all input factors.

Marginal Products

The additional output that is produced by employing one more unit of a particular input while holding the quantities of all other inputs constant.