In a floating exchange rate system, when national savings falls then the equilibrium exchange rate
a. falls and the trade balance falls.
b. falls and the trade balance rises.
c. rises and the trade balance falls.
d. rises and the trade balance rises.
B
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Marginal benefit is the
A) total benefit we receive from consuming a good or service. B) additional benefit we receive from consuming one more unit of a good or service. C) minimum amount of other goods or services we are willing to give u
Who are the voting members of the Federal Open Market Committee and why is this committee important? Where does the power lie within this committee?
What will be an ideal response?
When U.S. banks borrow from one another, they must pay the
A) discount rate. B) prime rate. C) Fed funds rate. D) Interbank Offer Rate.
The efficiency wage theory argues that:
a. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong. b. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate. c. if an employer reduces wages for all workers during economic downturn, then the best workers more likely to leave, while the least attractive workers are more likely to stay. d. those already working for firms are "insiders," while new employees, at least for some time, are "outsiders.".