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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:

  1. Tradablegoods are goods that compete withforeign goods in either domestic orforeignmarkets.
  2. 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.
  3. 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.
  4. 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 .
  5. The domestic demand for goods and the demand for domestic goods are the same thing.
  6. An increase in government spending leads to an increase in output AND to a decreasein the trade balance.
  7. An increase in foreign demand for NZ goods leads to an increase in output AND an increase in the trade balance.
  8. The J-curve describesthe dynamic impact on the trade balance of a real exchange rate depreciatiuon.
  9. 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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