Homework Answers
Answers-
Q 7)
The correct option is fall.
The output will reduce or fall in the short run due to currency devaluation of a country, as countries, depreciation exerts a negative impact on output growth.
Q 8)
The correct option is Floating exchange rates.
It creates asymmetry as the country is able to conduct independent
monetary policy which is under merged currency where the policy is
independent of fluctuating exchange rates.
The options 2,3 abd 4 are incorrect.
Add Answer to:
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes...
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise....
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged.
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise....
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged. If investors believe a country's currency is fixed at an overvalued level, the central bank's supply of foreign reserves will most likely be rising falling. remaining unchanged.
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers...
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
19 20 QUESTION 19 A country with a floating exchange rate faces a short-run recession and...
19 20
QUESTION 19 A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? O Only with increasing output O Only with increasing the current account balance O No, not with either goal Yes, with both goals QUESTION 20 and output will In the short run, if the central bank decreases the money supply,...
17 18 QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
Question 13. After 1973, the world never seemed to be able to return to the Bretton...
Question 13. After 1973, the world never seemed to be able to return to the Bretton Woods system of fixed exchange rates. One reason often cited for this is that after 1973, OPEC sharply raised the dollar price of oil sold on world markets. For countries other than the US, the abandonment of fixed exchange rates turned into a blessing, in light of the increase in the world price of oil. This is because: A. With higher oil prices, these countries’...
SECTION A (50) Read the case study below and answer the questions. SHORT RUN STABILIZATION AND...
SECTION A (50) Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia – a small, young country on the east coast of the Baltic Sea – has recently earned the title of a ‘‘tiger’’. After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a planned to a market economy. The first decade proved...
please help with a detailed, fully explained answer for Question 2. thank you Read the case...
please help with a detailed, fully explained answer
for Question 2. thank you
Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...
Please help me answer theses practice questions QUESTION 2 Which of the following can a country...
Please help me answer theses practice questions
QUESTION 2 Which of the following can a country implement to protect local industries (e.g. bicycles) according to the video on the deceptive promise of free trade? Border walls local training programs to strengthen local industries protectionist policies such as tarrifs creating a high minimum wage locally governments can't do anything QUESTION 3 Which of the following European countries has a trade surpluse with the US as well as most other European countries...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged.
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged. If investors believe a country's currency is fixed at an overvalued level, the central bank's supply of foreign reserves will most likely be rising falling. remaining unchanged.
A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? Only with increasing output Only with increasing the current account balance No, not with either goal Yes, with both goals In the short run, if taxes rise, output will_and the exchange rate will increase; appreciate increase; depreciate decrease; appreciate decrease; depreciate With a fixed...
19 20
QUESTION 19 A country with a floating exchange rate faces a short-run recession and current account deficit. Policymakers want to use temporary expansionary monetary policy to increase both output and the current account balance. Will they be successful? O Only with increasing output O Only with increasing the current account balance O No, not with either goal Yes, with both goals QUESTION 20 and output will In the short run, if the central bank decreases the money supply,...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
please help with a detailed, fully explained answer
for Question 2. thank you
Read the case study below and answer the questions. SHORT RUN STABILIZATION AND LONG RUN COMPETITIVENESS: THE LAVITAN CASE Growth of a young country Latvia - a small, young country on the east coast of the Baltic Sea -has recently earned the title of a "tiger". After gaining its independence from the Soviet Union in 1991, the country embarked upon a challenging road of transitioning from a...
Please help me answer theses practice questions
QUESTION 2 Which of the following can a country implement to protect local industries (e.g. bicycles) according to the video on the deceptive promise of free trade? Border walls local training programs to strengthen local industries protectionist policies such as tarrifs creating a high minimum wage locally governments can't do anything QUESTION 3 Which of the following European countries has a trade surpluse with the US as well as most other European countries...
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