For a given real exchange rate, a nominal appreciation of the domestic currency will result from
A. an increase in the price of the domestic good.
B. a decline in the terms of trade.
C. an increase in the price of the foreign good.
D. an increase in the domestic rate of inflation.
Answer: C
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On the graph above, assuming that G = 0 and NX = 0, the labeled point at which saving is lowest is point ________
A) A B) B C) G D) H E) not inferable from the information given
Since 1930, U.S. agriculture employment
a. has decreased while agricultural output has increased. b. has increased while agricultural output also has increased. c. has decreased while agricultural output also has decreased. d. has increased while agricultural output has decreased.
Exhibit 15-6 Aggregate demand and supply model
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In Exhibit 15-6, if the aggregate demand curve is at AD3, the government should:
A. raise taxes to move to AD1. B. cut taxes to move to AD2. C. not change its behavior. D. cut spending to move to AD2.
A decline in the real interest rate will:
A. increase the amount of investment spending. B. shift the investment schedule downward. C. shift the investment demand curve to the right. D. shift the investment demand curve to the left.