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Revision Homework Task: --- hey there! would love some help here, as I'm a bit short for time and struggling a bit on these questions
Revision Homework Task: --- hey there! would love some help here, as I'm a bit short for time and struggling a bit on these questions
TRUE/FALSE:
- Tradablegoods are goods that compete withforeign goods in either domestic orforeignmarkets.
- If anappreciationof the domestic currencyis defined as an increase in the price of the domestic currency in terms of a foreign currency then a chart of the exchange will show an appreciation as an increase.
- Consider a NZ made widget that costs $2400and a Japanese made widgetthat costs 242,000yen. If the nominal exchange rate is 110 yen per dollar, then the NZ made widget is the cheapest.
- Suppose that Japanese firms starts making some popular new consumer electronics that are a 'must have' in NZ.This will cause the New Zealand dollar to appreciate .
- The domestic demand for goods and the demand for domestic goods are the same thing.
- An increase in government spending leads to an increase in output AND to a decreasein the trade balance.
- An increase in foreign demand for NZ goods leads to an increase in output AND an increase in the trade balance.
- The J-curve describesthe dynamic impact on the trade balance of a real exchange rate depreciatiuon.
- The NZ government's massive spending to rescue the economy will cause the NZ current account deficitto worsen,all other things equal.
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