Refer to the figure above. When the real exchange rate is below R*:
A) net exports are negative.
B) net exports are positive.
C) net exports can be positive or negative depending on the value of R*.
D) net exports are zero.
B
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All of the following are barriers to international investment EXCEPT
A) adverse selection. B) incomplete information. C) moral hazard. D) symmetric information.
Which of the following is an unintended side effect of protectionist policies to protect domestic jobs?
a. The consumers are paying higher prices to the protected industry, so they will purchase less product from that industry, and jobs are lost in the protected industry. b. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will lose sales to foreign producers who do not need to pay the higher price. c. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will increase sales from foreign producers. d. The consumers are paying higher prices to the protected industry, so they will purchase more products from unprotected industries, and jobs are gained in the unprotected industry.
A price ceiling is
A. the lowest price a buyer can pay for a good without having to report the purchase to the government. B. a legal maximum price that can be charged for a particular good or service. C. the lowest price a seller can charge for a good without losing all her customers. D. a legal minimum price that can be charged for a particular good or service.
A division of a firm is
a. a logical sub-organization of the firm b. a level within the firm in which a large degree of autonomy is vested c. a level of hierarchy within a firm that defines the scope of a manager d. all of the above