When the U.S. dollar decreases in value relative to foreign currencies, the ________.
A. demand for U.S. exports will increase
B. supply of U.S. exports will remain constant
C. supply of U.S. exports will decrease
D. demand for U.S. exports will decrease
Answer: A
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Good A and good B are substitutes in production. The demand for good A decreases, which lowers the price of good A. The decrease in the price of good A
A) decreases the supply of good B. B) increases the supply of good B. C) decreases the demand for good B. D) increases the demand for good B.
After an unexpected ________ in the price of oil, the long-run adjustment decreases the price level and ________ the unemployment rate as they return to their original levels
A) increase; increases B) increase; decreases C) decrease; decreases D) decrease; increases
Multinational companies are concerned about exchange rate risk
Indicate whether the statement is true or false
As an option approaches its expiration date, the value of the option approaches:
A. zero. B. the price of the underlying asset. C. the intrinsic value. D. infinity.