A fall in the real exchange rate (appreciation) will decrease the trade balance in the short run and cause a(n) ___ of the total demand curve.

a. downward shift
b. increase in the slope
c. upward shift
d. decrease in the slope


Ans: a. downward shift

Economics

You might also like to view...

Money neutrality implies that changes in the money supply have an impact on

A) the unemployment rate. B) interest rates. C) the price level. D) real GDP.

Economics

The life-cycle hypothesis predicts there to be a rather ________ short-run multiplier and thus a rather ________ private economy

A) low, unstable B) low, stable C) high, unstable D) high, stable

Economics

Which of the following is correct?

A) AFC = TC/Q - TVC/Q B) AVC = TVC - AFC C) TC = AVC?Q D) MC = TC - TVC

Economics

The minimum wage is a

A. price ceiling. B. cost ceiling. C. positive externality. D. price floor.

Economics