Multiple Choice
The effect of a depreciation of the domestic currency on the trade balance is likely to:
A) have little or not effect.
B) increase it in the short run and decrease it in the long run.
C) decrease it in the short and long runs.
D) decrease it in the short run and increase it in the long run.
E) not be consistent.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: Which of the following is usually associated
Q12: In a closed economy, an expansionary monetary
Q13: In an open economy, contractionary fiscal policy
Q14: As a government adopts an expansionary fiscal
Q15: The conflicting effects of an expansionary fiscal
Q17: Which of the following is not associated
Q18: In an open economy, an expansionary monetary
Q19: Fiscal policy refers to the government's ability
Q20: Flexible exchange rates tend to reduce the
Q21: A contractionary fiscal policy generally results in