In 2009 Greece's budget deficit rose and people became worried about the ability of the Greek government to make payments on its debt. Which of the these events reduces a country's real exchange rate?
a. an increase in the budget deficit, and increased concerns about the ability of the government to pay back its debt
b. an increase in the budget deficit, but not increased concerns about the ability of the government to pay back its debt
c. increased concerns about the ability of the government to pay back its debt, but not an increase in the budget deficit
d. neither an increase in the budget deficit, nor increased concerns about the ability of the government to pay back its debt
c
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Which of the following occurs if the expected profit increases?
A) Investment demand increases and the demand for loanable funds curve shifts rightward. B) The quantity of investment demanded decreases and there is a movement up along the demand for loanable funds curve. C) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve. D) The savings increases and the supply of loanable funds curve shifts rightward. E) Investment demand decreases and the demand for loanable funds curve shifts leftward.
Which of the following is true of perfect price discrimination compared to charging a single price?
a. Output is greater. b. Output is the same, but profit is higher. c. Output is lower, but profit is higher. d. Output is lower, and profit could be higher or lower. e. Output is the same, but profit is lower.
The demand for good X has been estimated to be ln Qxd = 100 ? 2.5 ln PX + 4 ln PY + ln M. The own price elasticity of good X is:
A. ?2.5. B. 4.0 percent. C. 4.0. D. ?2.5 percent.
Economists disagree about exactly what causes recessions; there is general agreement, however, on one of the following factors as a major part of any adequate explanation:
What will be an ideal response?