If a government of a country with a zero trade balance increases its budget deficit, then the real exchange rate
a. appreciates and there is a trade surplus.
b. appreciates and there is a trade deficit.
c. depreciates and there is a trade surplus.
d. depreciates and there is a trade deficit.
b
You might also like to view...
The data in the table above shows the relationship between the Joneses' total consumption and total household income. Based on these data, total consumption varies
A) directly with their total household income. B) independently of their total household income. C) inversely with their total household income. D) negatively with their income.
From the new classical perspective, the disinflation in the early 1980s resulted in a significant recession because
a. the policy change to disinflation was unanticipated. b. the policy was not credible. c. inflationary expectations were backward looking. d. None of the above e. both a and b.
If a monopolist must lower the price on all units in order to sell an additional unit,
a. it is impossible for the monopolist to maximize profit b. the monopolist will always lose profit when it increases quantity c. the monopolist will always lose revenue when it increases quantity d. price will always be greater than marginal revenue e. price will always be less than marginal revenue
For all firm types price equals marginal revenue, and for competitive firms price equals average revenue
a. true b. false