The existence of the J-curve suggests that a real depreciation will cause
A) an initial increase in net exports.
B) an initial increase in economic activity.
C) a final reduction in net exports.
D) an initial reduction in the demand for domestic goods.
D
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Given that the firm only chooses to sell the high-end professional series, how should it price its product?
a. Price low, sell to both users b. Price high, sell only to the professional chefs c. Price low, sell only to the professional chefs d. Price high, sell only to the home users
Explain why a risk averse individual will purchase full insure if a policy is actuarially fair, but only partially insure or not insure at all, if it is not. Use graphs to support your answer.
What will be an ideal response?
Assume that product Alpha and product Beta are both priced at $1 per unit and that Ellie has $20 to spend on Alpha and Beta. She buys 8 units of Alpha and 12 units of Beta. The marginal utilities of the last unit of Alpha and Beta that she purchases are 40 utils and 20 utils, respectively. This indicates that
A. Ellie should make no change in consumption. B. in order to maximize utility, Ellie should buy more Beta and less Alpha. C. in order to maximize utility, Ellie should buy more Alpha and less Beta. D. given another dollar, Ellie should buy an additional unit of Beta.
The curve formed by plotting the value of the marginal product for workers against quantity of labor is:
A. downward sloping. B. perfectly elastic, for competitive firms. C. perfectly inelastic. D. upward sloping.