Which of the following is NOT a result of a permanent fall in foreign demand on one country's exports under floating exchange rate?
A) The DD curve shifts to the left due to reduction of aggregate demand.
B) The AA curve shifts upwards due to the increased expected long-run exchange rate.
C) a reduction in output by a smaller degree compared to temporary fall in demand
D) depreciation in home country's currency
E) a raised level of unemployment
E
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Indicate whether the statement is true or false
A strategic pre-commitment occurs when a firm:
A. commits to some actions before rivals take theirs, with the aim of increasing its future competitive profit. B. commits to some actions after rivals take theirs, with the aim of increasing its future competitive profit. C. commits to some actions before rivals take theirs purely by accident. D. commits to some actions after rivals take theirs because there are no other options.
Financial systems have all but which of the following in common?
A) market-oriented emphasis B) payments systems C) central banks D) information asymmetries
If the MPC = 3/4, an increase in government purchases of $40 billion will ultimately lead to:
a. a $160 billion increase in aggregate demand. b. a $40 billion increase in aggregate demand. c. a $30 billion increase in aggregate demand. d. a $30 billion decrease in aggregate demand.