Explain the determinants of exports and imports
What will be an ideal response?
Exports are a function of foreign output and the real exchange rate. Imports are a function of domestic output and the exchange rate.
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A free rider is a person who ________
A) can produce a good at a very low cost B) only consumes products provided by the government C) receives the benefit of a good without paying for it D) purchases products available for discounts
Suppose the CEO of a major corporation has five subsidiary companies. Only one of these companies is making better than the return on similar investments that the company could be making if it invested its financial capital outside the company
The CEO tells each of these subsidiary companies that the rate of return that they are earning is not acceptable and must rise to the level of these identified companies. He tells them if they can't come up with a plan in twelve months that their companies will be sold. If each of these companies was actually making money can you come up with an economic argument for why it is still rational for this CEO to sell them if they don't abide by his directive.
Which of the following best describes aggregate expenditure?
a. C + I + G + (X ? M) b. C + S + G + (X ? M) c. C + I + G + (X + M) d. C + I + T + (X ? M) e. C + I + T + (X + M)
Which of the following is NOT a characteristic of a market in equilibrium?
A. Buyers can buy as many units as they want at the equilibrium price. B. Neither buyers nor sellers want the price to change. C. Sellers can sell as many units as they want at the equilibrium price. D. There is neither excess supply nor excess demand.