A.CA = EX –IMB.CA = IM –EXC.CA=EX=IM.D.CA = EX +IME.None of the aboveAnswer: A

A.An increase in the real exchange rate and an increase in disposable income improve the current account.B.A decrease in the real exchange rate and a decrease in disposable income ...

A.A depreciation of a country’s currency makes its goods cheaper for foreigners.B.A depreciation of a country’s currency makes its goods more expensive for foreigners.C.A depreci...

A.A rise in domestic real income raises aggregate demand for homeB.A rise in domestic real income decreases aggregate demand for home output because of the increased demand forC.A ...

A.The dollar rate of return on euro deposits is the euro interest rate plus the rate of depreciation of the dollar against the euro.B.The dollar rate of return on euro deposits is ...

Under fixed rates, which one of the following statements is the most accurate?A.Monetary policy can affect onlyB.Monetary policy can affect onlyC.Monetary policy can affect only in...

A.A rise in the interest rate offered by dollar deposits causes the dollar to appreciate.B.A rise in the interest rate offered by dollar deposits causes the dollar to depreciate.C....

Under fixed rates, which one of the following statements is the most accurate?A.Fiscal policy can affect output, employment, and international reserves at the same time.B.Fiscal po...

A.For a given U.S. interest rate and a given expectation with regard to the future exchange rate, a rise in the interest rate paid by euro deposits causes the dollar to depreciate....

A.Fiscal policy has the same effect on employment under fixed and flexible exchange rateB.Fiscal policy affects employment less under fixed than under flexible exchange rateC.Fisca...

A.A decrease in the money supply lowers the interest rate, while an increase in the money supply raises the interest rate, given the price level and output.B.An increase in the mon...

A.Fiscal policy has the same effect on output under fixed and flexible exchange rateB.Fiscal policy affects output more under fixed than under flexible exchange rateC.Fiscal policy...