Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help with following mcqs: 1)If the nominal exchange rate remains constant, which of the following, all else constant, will cause a country's real exchange

please help with following mcqs:

1)If the nominal exchange rate remains constant, which of the following, all else constant, will cause a country's real exchange rate to appreciate?

  • A.A reduction in the foreign price level.
  • B.A rise in bond prices.
  • C.A reduction in the domestic price level.
  • D.A reduction in the interest rates.

2)The J-curve illustrates the effects of

  • A.changes in the real exchange rate on net exports.
  • B.changes in domestic income on imports.
  • C.changes in foreign output on net exports.
  • D.changes in domestic output on net exports

3)If Country A's residents traditionally receive more income from holding foreign assets than foreign residents receive as income from holding Country A's assets, then Country A traditionally has a surplus in the net earnings from assets abroad. This figure will be recorded in the ...................... of the balance of payments.

  • A.capital transfer account
  • B.financial account
  • C.current account
  • D.change in net gold and foreign reserves

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inflation, Unemployment And Capital Malformations

Authors: Bernard Schmitt, Xavier Bradley, Alvaro Cencini

1st Edition

0429767064, 9780429767067

More Books

Students also viewed these Economics questions

Question

In what research projects are your students currently involved?

Answered: 1 week ago

Question

5. Give examples of binary thinking.

Answered: 1 week ago