Other things the same, if the U.S. price level falls, then
a. U.S. residents want to buy more foreign bonds. The real exchange rate rises.
b. U.S. residents want to buy more foreign bonds. The real exchange rate falls.
c. U.S. residents want to buy fewer foreign bonds. The real exchange rate rises.
d. U.S. residents want to buy fewer foreign bonds. The real exchange rate falls.
b
You might also like to view...
In 2008, the wealth of U.S. households fell by ________
A) $11 million B) $11 billion C) $11 trillion D) $11 gajillion
For a monopoly, the value of the next worker equals
A) MR ? MPL. B) p ? MPL. C) MPL. D) w/MPL.
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
It has been suggested that in order to protect U.S. jobs we need to restrict foreign competition by restricting imports.
A. This is a sound economic statement since U.S. firms will have to increase output to make up for the lack of imports leading to increase employment in the U.S. B. This is not a sound economic statement since employment in the U.S. does not depend on imports and exports. C. This is not a sound economic statement since import restrictions lead to a reduction in employment in the export industries of the U.S. D. This is a sound economic statement since the U.S. will still export protecting U.S. jobs.