Multiple Choice
American firms became less competitive compared to foreign firms during the 1980s because
A) the quality and productivity of American workers declined.
B) foreign firms were younger than American firms and as a result had more modern facilities that made use of the latest technology.
C) the U.S. dollar became worth more in terms of foreign currencies.
D) the U.S. dollar became worth less in terms of foreign currencies.
Correct Answer:

Verified
Correct Answer:
Verified
Q54: When the exchange rate changes from 1.0
Q56: When the domestic nominal interest rate rises
Q57: A rise in the expected future exchange
Q58: The expected return on dollar deposits in
Q60: An increase in the domestic interest rate
Q61: Forward exchange rates<br>A) involve the immediate exchange
Q62: Explain the theory of purchasing power parity.
Q63: When the exchange rate for the euro
Q64: Increased demand for a country's exports causes
Q90: The theory of purchasing power parity cannot