How is an exchange rate depreciation likely to affect imports and exports in the short run and over a longer period of time?
What will be an ideal response?
In the short run, the value of imports may increase, increasing the current account deficit. It may take many months before it causes exports to rise and imports to fall.
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Once a country has lost its comparative advantage in producing a good, its income will be ________ and its economy will be ________ if it switches from producing the good to importing it
A) higher; less efficient B) lower; less efficient C) higher; more efficient D) lower; more efficient
The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:
a. 1.0 b. their minimum values c. their average values d. 0.0 e. none of the above
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.
Who determines the price and quantity traded in a market?
A. buyers and sellers B. buyers C. sellers D. prices and quantities traded are not generally determined in markets