Suppose the rest of the world experiences an expansion that causes an increase in foreign income (Y*). From the domestic economy's perspective, this increase in foreign income will cause which of the following as the domestic economy adjusts to the rise in Y*?
A) an increase in domestic income
B) an increase in imports
C) an increase in net exports
D) all of the above
E) both A and C
D
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The Fed wants to keep the dollar at 0.80 euros per dollar. If the demand for dollars increases,
A) the Fed sells dollars to increase the supply of dollars and maintain the exchange rate. B) the Fed conducts persistent intervention on one side of the market. C) the Fed buys dollars to increase the supply of dollars and maintain the exchange rate. D) the Fed buys dollars to decrease the supply of dollars and maintain the exchange rate. E) the Fed sells dollars to decrease the supply of dollars and maintain the exchange rate.
Exchange rates and banking systems are often the variables through which the contagion effects of a crisis are spread from one country to another
Indicate whether the statement is true or false
Explain what caused the supply curve to shift more than the demand curve for HD televisions.
What will be an ideal response?
Which one of the following would not affect the position of the supply curve for cranberries?
A. the popularity of cranberry drinks B. the cost of fertilizers for cranberry production C. the number of sellers in the market D. development of a new pest control for cranberries