When the real exchange rate for the dollar appreciates, U.S. goods become
a. less expensive relative to foreign goods, which makes exports rise and imports fall.
b. less expensive relative to foreign goods, which makes exports fall and imports rise.
c. more expensive relative to foreign goods, which makes exports rise and imports fall.
d. more expensive relative to foreign goods, which makes exports fall and imports rise.
d
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Figure 10-5
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Figure 10-5 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry. At point C, the firm would
A. earn zero economic profit. B. earn negative economic profit. C. have a zero opportunity cost of capital. D. have a negative opportunity cost of capital.
Nearly half of federal government research and development spending takes place in the
A. National Science Foundation. B. National Aeronautics and Space Administration (NASA). C. Department of Defense. D. Federal Office of Technology Policy.
A study has estimated the effect of changes in interest rates and consumer confidence on the demand for money to be: ln M = 14.666 + .021 ln C ? 0.036 ln r, where M denotes real money balances, C is an index of consumer confidence, and r is the interest rate paid on bank deposits. Based on this study we know that the interest elasticity is:
A. very inelastic. B. unitary. C. zero. D. very elastic.
Which of the following statements is false?
A. In recent years, China has had a rate of savings of 35 to 40 percent. B. In the last two decades, the U.S. savings rate has not exceeded 11 percent. C. There was a significant increase in the U.S. savings rate in the mid-1990s. D. A high rate of consumption for a country implies a low savings rate.