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    Exam 17: Output and the Exchange Rate in the Short Run
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    When EP /P Rises
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When EP /P Rises

Question 16

Question 16

Multiple Choice

When EP When EP   /P rises A)  IM will rise. B)  IM will fall. C)  IM may rise or fall. D)  IM is not affected. E)  IM and P* will both rise. /P rises


A) IM will rise.
B) IM will fall.
C) IM may rise or fall.
D) IM is not affected.
E) IM and P* will both rise.

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