The Marshall-Lerner Condition states that, all else equal
A) nominal appreciation improves the current account if export and import volumes are sufficiently elastic with respect to the real exchange rate.
B) real depreciation improves the current account if export and import volumes are sufficiently inelastic with respect to the real exchange rate.
C) real appreciation improves the current account if export and import volumes are sufficiently elastic with respect to the real exchange rate.
D) real depreciation improves the current account if export and import volumes are sufficiently elastic with respect to the real exchange rate.
E) the sum of import and export elasticities must be equal to one in order for depreciation to occur.
D
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If the quantity of money starts to grow more rapidly than real GDP and velocity does not change, the result is
A) slower growth in the price level. B) an increase in investment. C) more rapid growth in potential GDP. D) the inflation rate rises. E) an eventual slowing in the growth rate of the quantity of money.
Everything else held constant, if aggregate output is to the left of the LM curve, then there is an excess ________ of money which will cause the interest rate to ________
A) supply; fall B) supply; rise C) demand; fall D) demand; rise
The antitrust legislation that made it illegal for a firm to pay cash for a competitor's patents, plant, and equipment was the:
a. Sherman Antitrust Act. b. Celler-Kefauver Act. c. Robinson-Patman Act. d. Clayton Act. e. FTC Act.
When fear of default on bonds issued by U.S. corporations decline, then
a. net capital outflow and the exchange rate both rise. b. net capital outflow rises and the exchange rate falls. c. net capital outflow falls and the exchange rate rises. d. net capital outflow and the exchange rate both fall.