Any point on the IS curve is an equilibrium in the goods market for the given interest rate.
Answer the following statement true (T) or false (F)
True
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Fractional Reserve Banking
Anything that increases the demand for foreign goods relative to domestic goods tends to ________ the domestic currency because domestic goods will only continue to sell well if the value of the domestic currency is ________,
everything else held constant. A) depreciate; lower B) depreciate; higher C) appreciate; lower D) appreciate; higher
A country that typically runs a trade deficit is:
A. Japan. B. Germany. C. the United States. D. China.
Suppose the South had won the Civil War, and trade no longer took place between Northern and Southern states. Explain whether the sum of the North and South GDPs would have been higher or lower than with the current United States.
What will be an ideal response?