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 ...

A.An increase in disposable income improves the currentB.An increase in disposable income does not affect the currentC.An increase in disposable income worsens the currentD.An incr...

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 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 ...

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.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.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...

A.Appreciation is a rise in E when the exchange rate floats, and revaluation is a fall in E when the exchange rate isB.Appreciation is a fall in E when the exchange rate floats, an...

A.Depreciation is a rise in E when the exchange rate is fixed, and devaluation is a rise in E when the exchange rateB.Depreciation is a decrease in E when the exchange rate floats,...

A.only fullB.only priceC.full employment and priceD.full employment and moderate increase inE.None of theAnswer: C

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