In the open-economy macroeconomic model, if there is a surplus in the market for foreign-currency exchange, which of the following will move the market to equilibrium?
a. the real exchange rate depreciates and net exports fall.
b. the real exchange rate depreciates and net exports rise.
c. the real exchange rate appreciates and net exports fall.
d. the real exchange rate appreciates and net exports rise.
b
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When the Federal Reserve increases its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. higher; shift to the right B. lower; shift to the left C. higher; shift to the left D. lower; shift to the right
Of the following resources used to supply sidewalk food in New York City, which is the most expensive?
a. capital b. land c. entrepreneurial ability d. labor e. food
An across-the-board income tax cut where all income taxes were cut by a constant percentage would
A. necessarily go to higher-income people and alter the after-tax distribution of income in favor of high-income people. B. necessarily go to higher-income people. C. alter the after-tax distribution of income in favor of high-income people. D. by definition, keep the after-tax distribution of income relationships constant.
Compare and contrast the Bertrand and Cournot models of oligopoly. Your discussion should include assumptions made, goals of the firms and the resulting outcomes.
What will be an ideal response?