Question
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
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