Depreciation of the Japanese yen would lead to
A. outward shift in the aggregate supply curve for Japan.
B. upward shift in the aggregate demand curve for Japan.
C. downward shift in the aggregate supply curve for Japan.
D. inward shift in the aggregate demand curve for Japan.
Answer: B
You might also like to view...
Refer to the figure above. When the real exchange rate is above R*:
A) net exports are zero. B) net exports are positive. C) net exports are negative. D) net exports can be positive or negative depending on the value of R*.
A multilateral real exchange rate is the
A) government exchange rate. B) index based on the average of the real exchange rates with all other countries in the world. C) adjusted exchange rate. D) index based on the average of the real exchange rates with all U.S. trading partners.
The money multiplier is equal to:
A. the government spending multiplier. B. the marginal propensity to consume. C. the reserve ratio. D. 1/(reserve ratio).
A monopolist has market power because it faces a downward-sloping demand curve.
Answer the following statement true (T) or false (F)