Holding everything else constant, the U.S. real exchange with Australia will increase if inflation is higher in the United States than in Australia
Indicate whether the statement is true or false
TRUE
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Which of the following can prevent markets from reaching efficiency? I. decreasing marginal benefit II. taxes III. quantity regulations that limit the quantity that may be produced
A) I and II B) I and III C) II and III D) I, II and III
During the Great Depression we observed:
a. higher prices. b. higher real wages. c. lower output. d. higher money wages. e. both b and d.
How does a recession impact the financial markets?
A. It increases stock prices. B. It increases loanable funds. C. It decreases loanable funds. D. It decreases risk.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential