According to historical data, what is the effect of a sharp change in the current account on the exchange rate (both in the short and long run)?
A) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to depreciate.
B) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to depreciate.
C) At first, home currency will appreciate as CA balance rises, but over time, currency will begin to depreciate.
D) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to appreciate.
E) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to appreciate.
B
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In the above figure, if the minimum wage is set at $8 per hour, the level of unemployment is ________ hours per week is
A) 40 million B) 30 million C) 20 million D) 0
A Phillips curve is
A) the correlation between money growth and the inflation rate. B) the negative correlation between the unemployment rate and the vacancy rate. C) the positive observed correlation between the inflation rate and the nominal interest rate. D) an observed positive correlation between the inflation rate and some measure of aggregate economic activity.
If expectations about the future don't change at all, then an economic downturn will generally:
A. decrease savings at a given interest rate and shift the supply curve for loanable funds to the left. B. increase savings at a given interest rate and shift the supply curve for loanable funds to the left. C. decrease savings at a given interest rate and shift the supply curve for loanable funds to the right. D. increase savings at a given interest rate and shift the supply curve for loanable funds to the right.
An example of rent seeking is
a. lobbying by industrial groups. b. lawsuits between rival firms. c. battles over exclusive licenses. d. All of the above are correct.