If a currency appreciates, a country's net exports
a. fall and AD increases.
b. rise and AD increases.
c. fall and AD decreases.
d. rise and AD decreases.
c
You might also like to view...
Refer to Figure 11-3. Which of the following would cause an economy to move from a point like A in the figure above to a point like B?
A) a technological regression B) a decrease in capital per hour worked C) an increase in capital per hour worked D) an improvement in technology
Suppose there are three buyers in the market for bottled water. At a price of $2 per bottle, Jerry demands 23 bottles, Elaine demands 14 bottles, and Kramer demands 7 bottles. One point on, the market demand curve for bottled water is
a. price = $2 and quantity = 23 bottles b. price = $88 and quantity = 44 bottles c. price = $88 dollars and quantity = 14 bottles d. price = $2 and quantity = 44 bottles e. impossible to determine from the information given
Your roommate is having trouble grasping how monetary policy works. Which of the following explanations could you use to correctly describe the mechanism by which the Fed can affect the economy through monetary policy? Increasing the money supply
A) lowers the interest rate, and firms increase investment spending. B) causes people to spend more because they know prices will rise in the future. C) raises the interest rate and consumers decrease spending on durable goods. D) lowers the interest rate, raises the value of the dollar, lowers the prices of exports, and raises net exports.
The foreign exchange market is the market on which the ________ of various nations are traded for one another.
A. currencies B. goods and services C. international financial securities D. stocks and bonds