Which of the following compete to determine whether the current account improves or worsens following a rise in the real exchange rate?

A) appreciation and depreciation
B) crowding Out effect and producers effect
C) volume effect and value effect
D) volume effect and inflation
E) producers effect and value effect


C

Economics

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When the price of Nike soccer balls decreased, Ronaldo purchased more Nike soccer balls and fewer Adidas soccer balls. Which of the following best explains Ronaldo's decision to buy more Nike soccer balls?

A. An increase in the demand for Nike soccer balls B. The price effect C. The income effect D. The substitution effect

Economics

The empirically observed backward-bending labor supply curve cannot arise from homothetic tastes.

Answer the following statement true (T) or false (F)

Economics

The financial deregulation and financial innovations of the 1970s and 1980s

A) stabilized money demand. B) stabilized velocity. C) destabilized velocity. D) A and C.

Economics

Economist Alban William Phillips believed that: a. the Fed should follow a policy rule because it does not know the lag structure. b. the Fed should follow a policy rule to avoid monetary surprises

c. there is an inverse relationship between inflation and unemployment. d. private sector spending is inherently unstable. e. government spending is inherently unstable.

Economics