The U.S. real interest rate rises relative to Japan's. As a result,
A) the yen will depreciate and the dollar will appreciate.
B) the yen will appreciate and the dollar will depreciate.
C) both the dollar and the yen will depreciate.
D) both the dollar and the yen will appreciate.
A
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The change in aggregate expenditures resulting from a movement in the domestic price level, which in turn changes the price of domestic goods in relation to foreign goods, is known as the:
a. international trade effect. b. multilateral equilibrium condition. c. international exchange rate effect. d. magnified international pricing effect. e. international deficit effect.
Bankers must always trade off
a. honesty and dishonesty. b. stocks and loans. c. prudence and profits. d. gold and cash. e. All of the above are correct.
To avoid trade restrictions, a U.S. firm moves its final production process to Ireland and then ships the final products to Germany. This is an example of
A) trade deflection. B) trade diversion. C) protectionism. D) rules of origin.
If two factors of production are substitutes in production, then a decrease in plant size will make the total product curve
a. higher and steeper. b. lower and steeper. c. higher and more shallow. d. lower and more shallow.