Other fundamental things being equal, a decrease in the exchange rate value of domestic currency will cause the current account to
A. overshoot its long-run value.
B. move toward a surplus.
C. move toward a long-run deficit.
D. equal the official settlements balance.
Answer: B
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At higher interest rates the
A) money supply is indeterminate. B) quantity of money demanded is higher. C) money supply is higher. D) quantity of money demanded is lower.
What will an indifference curve look like between two commodities that are perfect complements, such as right shoes and left shoes?
What will be an ideal response?
Over the past several decades, low-productivity and high-productivity workers in the US and other countries have tended to invest in their own human capital by completing more years of college than earlier generations
Which of the following reasons does NOT help to explain this trend? A) The cost of education for low-productivity workers has declined due to the emergence of online and other nontraditional programs. B) The earnings gap between workers with and without education has grown larger over time. C) The cost of education for high-productivity workers has increased over time. D) The benefit associated with increased education has increased over time.
Moving along a budget line, the prices of both goods:
a. vary and the consumer's budget is held constant. b. are held constant and the consumer's budget varies. c. and the consumer's budget are held constant. d. and the consumer's budget vary.