All of the following are possible explanations for why it took so long for trade balances to respond to the depreciation of the dollar EXCEPT
A) the prior increase in the value of the dollar had padded the profit margins of foreign producers.
B) foreign trade barriers made it impossible for the United States to substantially expand exports it bought.
C) there were still impacts from earlier appreciations working through the system.
D) exports began to increase from a much lower base than imports.
E) None of the above. That is, A, B, C, and D are all correct.
B
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Decreases in the value of existing assets are called:
A. capital losses. B. investment. C. capital gains. D. saving.
An increase in the price level in the economy leads to
A) a leftward shift in the demand for money curve. B) a rightward shift in the demand for money curve. C) a leftward movement along the demand for money curve. D) a rightward movement along the demand for money curve.
The federal budget is: a. submitted by Congress to the President and contains proposals for tax increases
b. submitted by Congress to the President and contains proposals for government expenditures. c. always in balance, with receipts equal to expenditures. d. equal to government purchases plus cash and in-kind transfer payments. e. usually planned for the calendar year, which starts from January.
Explain how the prices of goods and services used in the CPI differ from the prices reflected by GDP deflator