Currency appreciation would occur in a nation if
A. the demand for the nation's exports increases.
B. the demand for the nation's imports increases.
C. real interest rates in the nation decrease relative to the rest of the world.
D. the inflation rate is higher within the nation than in the rest of the world.
A. the demand for the nation's exports increases.
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Refer to Figure 4.1. Theodore's available strategies include
A) top and bottom. B) up and down. C) left and right. D) all of the above
In reality, the long-run supply curve tends to be:
A. perfectly inelastic. B. perfectly elastic. C. upward sloping. D. downward sloping.
Which of the following is always a characteristic of the contraction phase of the business cycle?
A) lower unemployment rates B) a decline in Real GDP C) higher inflation rates D) a decline in GDP E) all of the above
In Figure 9.8, if full-employment income is produced at $400 billion, the government can reduce a recessionary gap by
A. Decreasing government spending. B. Increasing taxes. C. Decreasing investment spending. D. Decreasing income taxes on consumers.