Multiple Choice
A country with budget deficit which is also at full employment can improve its deficit situation by allowing its currency to depreciate,only if,
A) the real domestic absorption is reduced
B) the real domestic absorption is increased
C) level of imports can be increased
D) income can be increased
Correct Answer:

Verified
Correct Answer:
Verified
Q27: The foreign exchange market is stable if:<br>A)η<sub>M
Q28: The mint parity plus the cost of
Q29: In the following diagram D<sub>€</sub> is the
Q30: The price elasticity of the US demand
Q31: According to the J-curve effect,when a nation's
Q33: The price elasticity of the US demand
Q34: The price-specie-flow adjustment mechanism operates by the
Q35: The marginal propensity to save is the
Q36: If η<sub>M </sub>= -.85 and η<sub>X</sub> =
Q37: The equilibrium level of income in an