What happens to the trade balance of a deficit nation if it allows its currency to depreciate

Question:

What happens to the trade balance of a deficit nation if it allows its currency to depreciate or devalue from a position of full employment? How can real domestic absorption be reduced?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Economics

ISBN: 978-1118955765

12th edition

Authors: Dominick Salvatore

See More Books

Question Posted: Oct 27, 2017 09:35 AM

See More Questions

What are the critical assumptions of the price-specie-flow mechanism? What happens to the trade balance in a surplus country if the demand for traded goods is price inelastic? Why?
What happens to the deadweight loss and tax revenue when a tax is increased?
What happens to the ability to forecast for periods farther into the future?
A pack of iron bolts is such that the difference in masses or weights of successive sizes is the same bolt being of mass 13.5 grams and the largest is 94.5 grams. If the total mass of the complete...
The magnitude J of the current density in a certain wire with a circular cross section of radius R = 2.00 mm is given by J = (3.00 x 108) r2, with J in amperes per square meter and radial distance r...
The flowchart below shows the August production activity of the punching and bending departments of Wire Box Company. Use the amounts shown on the flowchart to compute the missing numbers identified...
Japanese IQ scores. The Wechsler Intelligence Scale for Children is used (in several languages) in the United States and Europe. Scores in each Chapter 13 Exercises 285 case are approximately...
An airline company is interested in the opinions of their frequent flyer customers about their proposed new routes. Specifically they want to know what proportion of them plan to use one of their new...
The following data are given for Bahia Company: ound interim calculations. The fixed factory overhead volume variance is a. $103,818 unfavorable b. $103,818 favorable c. $38,781 unfavorable d....
Rusty Spears, CEO of Rusty's Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a...
What is meant by the elasticity approach? The absorption approach? In what way does the absorption approach integrate the automatic price and income adjustment mechanisms?
What is meant by automatic monetary adjustments? How do they help to adjust balanceofpayments disequilibria?
Determine mentally an integer n so that the logarithm is between n and n + 1. Check your result with a calculator. (a) log 79 (c) log 5 (b) log 500 (d) log 0.5
The following information is available for two different types of businesses for the 2011 accounting period. Dixon Consulting is a service business that provides consulting services to small...
Marino Basket Company had a $\$ 6,200$ beginning balance in its Merchandise Inventory account. The following information regarding Marino's purchases and sales of inventory during its 2011...
On March 6, 2011, Bob's Imports purchased merchandise from Watches Inc. with a list price of $\$ 31,000$, terms $2 / 10, n / 45$. On March 10, Bob's returned merchandise to Watches Inc. for...
The following events apply to Tops Gift Shop for 2012, its first year of operation: 1. Acquired $\$ 45,000$ cash from the issue of common stock. 2. Issued common stock to Kayla Taylor, one of the...
Indicate whether each of the following costs is a product cost or a period (selling and administrative) cost. a. Transportation-in. b. Insurance on the office building. c. Office supplies. d. Costs...
Which of the following statements is not true about business objectives? a. Business objectives represent targets of performance. b. Establishing meaningful business objectives is a prerequisite to...
Tell whether the angles or sides are corresponding angles, corresponding sides, or neither. AC and JK
What are the major forms of subsidies that governments grant to domestic producers?
What is meant by voluntary export restraints, and how do they differ from other protective barriers?
Should U.S. antidumping laws be stated in terms of average total costs or average variable costs?
Assignment Title: The Role of Bookkeeping in Business Management and Financial Reporting Objective: Understand the importance of proper bookkeeping procedures in the management of...
17) The adjustment that is made to allocate the cost of a building over its expected life is called:A) depreciation expense.B) residual value.C) accumulated depreciation.D) None of the above answers...
9) Prepaid Rent is considered to be a(n):A) liability.B) asset.C) contra-asset.D) expense.10) As Prepaid Rent is used, it becomes a(n):A) liability.B) expense. C) contra-asset.D) contra-revenue.11)...

What happens to the trade balance of a deficit nation if it allows its currency to depreciate

Question:

Step by Step Answer:

If there is a deficit in the nations balance of payments and it is operating at full employment ...View the full answer

International Economics

Students also viewed these Micro Economics questions