For this question, assume that the Marshall-Lerner condition does not hold. An increase in the real exchange rate will tend to cause which of the following to occur?
A) a reduction in NX and a reduction in Y
B) a reduction in NX and an increase in Y
C) an increase in NX and a reduction in Y
D) an increase in NX and an increase in Y
D
You might also like to view...
In the above figure, the inflationary gap when AD2 is the aggregate demand curve equals
A) the difference between 110 and 100. B) the difference between $16.5 trillion and $16.0 trillion. C) LAS minus SAS at a price level of 100. D) AD1.
The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that
a. only the tariff results in a higher domestic price b. only the quota decreases the amount of goods imported c. the decrease in producer surplus is smaller with the quota d. under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government e. under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government
Many years ago, the traditional mortgage loan structure specified
A. a down payment of 20%. B. a variable interest rate. C. an initial loan-to-value ratio of 100%. D. all of the options are correct.
(Appendix) If you have an offer of $10/hour and the relevant range of offers is $5/hour to $15/hour with the offers proportionately distributed across the range, what is your expected gain from engaging in a search for another offer?
A. Zero B. $5.00 C. $2.50 D. $1.25