From the perspective of the United States, a reduction in the nominal exchange rate will cause which of the following?
A) The dollar becomes more expensive to foreigners.
B) Foreign goods are less expensive to Americans.
C) Foreign currency is less expensive to Americans.
D) American goods are less expensive to foreigners.
E) none of the above
D
You might also like to view...
Scarcity exists because
A. of unlimited resources. B. human wants are enormous relative to the means available to satisfy them. C. production is limited only by technology and human energy. D. advertising creates unnatural desires for surplus goods.
Someone who has been temporarily laid off and is looking for work in the meantime is known as a ______.
a. job loser b. job leaver c. reentrant d. new entrant
According to Ronald Coase, for a free-market economy to work efficiently, there needs to be
A. a well-developed tax code. B. allocation of private property rights with high transactions cost. C. allocation of private property rights with low transactions cost. D. an autocratic form of government in the country.
Describe the channels through which open market purchases by the Fed affects output in an open economy
What will be an ideal response?