What happens in the short run in the Keynesian model to the exchange rate and net exports in each of the following cases?(a)The foreign real interest rate falls.(b)Foreign output rises.(c)Foreign demand for domestic goods rises.(d)Domestic output rises.(e)The domestic real interest rate falls.
What will be an ideal response?
| (a) | Exchange rate rises, net exports fall. |
| (b) | Exchange rate rises, net exports rise. |
| (c) | Exchange rate rises, net exports rise. |
| (d) | Exchange rate falls, net exports fall. |
| (e) | Exchange rate falls, net exports rise. |
You might also like to view...
Social welfare is
a. a government program through which society takes care of low-income people b. the overall well-being of people in the economy c. measured by spending on party supplies, restaurant meals, and movie tickets d. applies to sociology, not economics e. All the answers are correct.
When average total cost rises if a producer either increases or decreases production, then the firm is said to be operating at efficient scale
a. True b. False Indicate whether the statement is true or false
Accounting profit is equal to:
A. total revenue minus explicit costs. B. total revenue minus explicit and implicit costs. C. economic profit minus implicit costs. D. total revenue minus implicit costs.
Which of the following is true regarding transactional relationships?
a. They represent up to 80% of all relationships. b. They are largely unimportant. c. They are vital to profitability. d. They needed to be managed efficiently and fairly. e. Only A and D f. Only A, C, and D