For a given nominal exchange rate and foreign price level, an increase in the domestic price level ________ the real exchange rate.
A. decreases
B. increases
C. offsets any change in
D. may either increase or decrease
Answer: B
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If private savings equals $1.2 billion and private investment equals $1.5 billion, then there is a
A) current account balance. B) government sector deficit. C) private sector deficit. D) private sector surplus. E) government sector surplus.
The level toward which the economy is moving and where it will stay unless spending patterns of the economy will change is called the equilibrium level of output and income
Indicate whether the statement is true or false
The equal wealth and income distribution in the U.S. during its antebellum period can be clearly linked to its system of private property rights over land and minerals
Indicate whether the statement is true or false
Depreciation refers to a decrease in the value of a durable good caused by: a. an increase in the price level. b. changes in the interest rate
c. wear and tear over time. d. changes in tax laws. e. a decrease in its resale value.