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A Weaker U

Question 34

Multiple Choice

A weaker U.S. dollar is an economically favorable exchange-rate shift for manufacturing plants based in the United States.


A) This is a true statement.
B) No, the U.S. dollar must be stronger.
C) Yes, because it provides for a weakened foreign demand for U.S.-made goods.
D) Yes, because it makes such plants less cost competitive with foreign plants.
E) Yes, because it provides incentives of foreign companies to locate manufacturing facilities in the U.S. to make goods for U.S. consumers.

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