In an open economy under flexible exchange rates, a reduction in consumer confidence that causes a reduction in consumption will cause which of the following?
A) an appreciation of the domestic currency
B) a reduction in the exchange rate, E
C) a reduction in net exports
D) all of the above
E) none of the above
A
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It is argued that the market will
A. not produce a nonexcludable public good. B. produce the socially optimal output of a nonexcludable public good. C. produce too much of a nonexcludable public good. D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits. E. b and d
The longer one has to wait for a future payment, the greater the present value it has.
Answer the following statement true (T) or false (F)
The demand for U.S. dollars by foreign nations increases as:?
What will be an ideal response?
A method of measuring the money supply by looking at money as a medium of exchange is the
A. liquidity approach. B. transactions approach. C. fiduciary monetary system. D. capital control.