What happens in the short run in the Keynesian model to the exchange rate and net exports in each of the following cases?
(a) The foreign real interest rate falls.
(b) Foreign output rises.
(c) Foreign demand for domestic goods rises.
(d) Domestic output rises.
(e) The domestic real interest rate falls.
(a) Exchange rate rises, net exports fall.
(b) Exchange rate rises, net exports rise.
(c) Exchange rate rises, net exports rise.
(d) Exchange rate falls, net exports fall.
(e) Exchange rate falls, net exports rise.
You might also like to view...
What is the crowding-out effect and how does it operate? What is its relationship to the Ricardo-Barro effect?
What will be an ideal response?
Refer to Figure 5-3. If consumers paid the full price of medical services, the price they would pay is
A) $40. B) $55. C) $65. D) > $65.
If real GDP in a small country in 2015 is $8 billion and real GDP in the same country in 2016 is $8.3 billion, the growth rate of real GDP between 2015 and 2016
A) is 3.0%. B) is 3.6%. C) is 3.75%. D) cannot be determined from the information given.
In reality, there is not one labor market, but many
a. True b. False Indicate whether the statement is true or false