A real depreciation will initially cause a reduction in output when which of the following holds?
A) the Marshall-Lerner condition
B) the J-Curve effect
C) net exports are initially zero
D) net exports are initially negative
E) net exports are initially positive
B
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From Figure 8-5, one can deduce
A. TR = TC at outputs 10 and 60. B. MR = MC at output 35. C. TFC = 100. D. All of the responses are correct.
Here is how an open market purchase works: The Fed __________ government securities to (from) a commercial bank, which raises the bank's deposits at the __________ and increases the bank's __________
A) sells; Fed; reserves B) buys; Fed; reserves C) buys; Treasury; discount loans D) sells; Treasury; required reserve ratio E) buys; Fed; liabilities
Suppose the UK has instituted an expansionary monetary policy to fight unemployment in the economy. The UK has a floating exchange rate.a. If the exchange rate value of the pound remains steady, what are the effects of easy money on British national product and income? What is the effect on the British unemployment rate? Explain.b. Following the monetary expansion, what is the likely pressure on the exchange-rate value of the pound? Explain.c. What are the implications of the change in the exchange-rate value of the pound for British national product and unemployment? Does the change in the exchange rate tend to reinforce or counteract the expansionary thrust of the British monetary policy? Explain.
What will be an ideal response?
Agriculture industries are notorious for having barriers to entry.
Answer the following statement true (T) or false (F)