If the exchange rate between the United States and India changes from $1 = 60 rupees to $1 = 10 rupees, ceteris paribus
A. Indian exports to the United States increase.
B. the United States imports from India increase.
C. the trade deficit in the United States increases.
D. the United States exports to India increase.
Answer: D
You might also like to view...
In the model of the perfectly competitive firm, the firm's fixed costs are equal to its implicit costs of production
Indicate whether the statement is true or false
The pricing system has a failure built into it when externalities exist
a. True b. False Indicate whether the statement is true or false
The more elastic the supply of a product, the more the actual burden of a tax on the product will:
A. fall on sellers. B. fall on buyers. C. fall equally on both buyers and sellers. D. create a smaller deadweight loss (or excess burden).
The neoclassical synthesis
A) was a name coined by Keynes himself for his new theories. B) rejected virtually all of Keynes' insights. C) held that econometric models of the economy could not be used to predict the future. D) held that economy always operated at or very near the natural rate of unemployment. E) was the dominant school of thought among economists in the 1950s and 1960s.