The effects of inflation on the price competitiveness of a country's products may be offset by:
a) An appreciation of the currency
b) A revaluation of the currency
c) A depreciation of the currency
d) Lower inflation abroad
Answer: c) A depreciation of the currency
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You're buying snacks for an Econ Club meeting. You've been given $100 to spend on chips and soda. You buy 25 bags of chips and 15 sodas. If bags of chips cost $3 each and soda costs $1 each, are you within your budget?
A. No, Over budget by $10 B. Yes, Under budget by $0 C. No, Over budget by $15 D. Yes, Under budget by $10
The XX schedule shows how much
A) fiscal expansion is needed to hold the current account surplus at X as the currency is devalued by a given amount. B) monetary expansion is needed to hold the current account surplus at X as the currency is devalued by a given amount. C) fiscal expansion is needed to hold the current account surplus at X as the currency is evaluated by a given amount. D) fiscal and monetary expansions are needed to hold the current account surplus at X as the currency is devalued by a given amount. E) foreign funding is needed to hold the current account surplus at X as the currency is devalued by a given amount.
A monopolist changes price from $1 to $2 and sells 10 fewer units. The marginal revenue is
A) $10 B) -$10 C) $0 D) impossible to determine with the information provided.
The demand for a factor of production will be more inelastic
a. when the cost of the factor is small relative to the total cost of the product. b. the more elastic the demand for the final product. c. the easier it is to substitute other resources for the factor. d. the more elastic the supply of products produced with the resource.