In the case of purely flexible exchange rates, a decrease in domestic real income, with constant prices and domestic credit, will lead to
A) an increase in international reserves.
B) the depreciation of the domestic currency.
C) the appreciation of the domestic currency.
D) no change in the value of the domestic currency.
B
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Which of the following is a thrift institution? i. a credit union ii. the Fed iii. a savings bank
A) i only B) ii only C) iii only D) Both i and iii E) i, ii, and iii
A nation should specialize in the production of the product for which it has a(n):
a. absolute advantage. b. exchange rate. c. specialization. d. comparative advantage. e. terms of trade.
Which of the following is likely to have the most price inelastic demand?
a. strawberry-banana milk shakes b. gasoline in the short run c. diamond earrings d. box seats at a major league baseball game
the federal open market committee of the federal reserve system is responsible for
What will be an ideal response?