Multiple Choice
A flexible exchange rate ________ the impact of terms of trade shocks on output and employment because of the effect of a change in the exchange rate on ________.
A) dampens; the terms of trade
B) dampens; net exports
C) has no effect on; the inflation rate
D) magnifies; the interest rate
E) magnifies; the terms of trade
Correct Answer:
Verified
Correct Answer:
Verified
Q138: Prior to the onset of the global
Q139: If a basket of goods costs 1000
Q140: Consider Canada's trade with the United States.Canadian
Q141: Other things being equal,if the Canadian dollar
Q142: Suppose we hear on the news that
Q144: Payments made to foreign firms arising from
Q145: Suppose the central bank of a country
Q146: Consider the following annual transactions in Canada's
Q147: A rise in the Canadian-dollar price of
Q148: The table below shows hypothetical indexes for