The graph for net export market is drawn as net export on the horizontal axis and real exchange rate on the vertical axis. In this market, equilibrium real exchange rate is determined by the intersection of the downward sloping net export schedule and the vertical (savings - investment) line.
Answer: option A
32. If a graph is drawn with net exports on the horizontal axis and the real exchange rate on the vertical axis, the...
A graph of net exports has a negative slope because net exports are a decreasing function of A. exports O B. imports. °C, output. :Trade sufplus D. domestic demand. Exports are not a function of output, Y, but of Y * which designates: OA. foreign income. OB. real exchange rate. C. domestic income. YTB BC Trade deficit NX D. nominal exchange rate.
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through changes in the real interest rate and affectsthrough changes in the Points out of 1.00 exchange rate. r Remove flag Select one: A. Consumption and investment; net exports O B. net exports; taxes and saving o c. productivity and growth; consumption O D. taxes and saving; net exports Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through...
Refer to the following graph to answer the next five questions: Vertical Axis Horizontal Axis Assuming the figure represents the market for loanable funds, it would be true that the vertical axis represents the interest rate, and the distance between points C and D represents the surplus of loanable funds at interest rate A. o line 1 represents the interest rate, and line 2 represents the quantity of savings. the vertical axis represents the quantity of funds lent and borrowed,...
2013607#918 98 Net exports will increase if: Select one: O a. the exchange rate for the dollar appreciates b. the exchange rate for the dollar depreciates c. there is a decrease in investment O d. there is a decrease in foreign Real GDP On a simple circular flow diagram:
What happens to the real exchange rate and net exports in each of the following cases? a. Import restrictions i.e. quota or tariffs on foreign goods b. The domestic prices rise more than foreign prices c. nominal exchange rate e falls
26. If the US real exchange rate appreciates against major countries, then which of the following is true about US exports and imports? a. The US export increases and import decreases b. The US export decreases and import increases c. Both export and import increases d. Net export remain unchanged 27. Which of the following statement is true? a. If national saving is greater than national investment, then net export is positive. b. If national saving is less than national...
What happens to the real exchange rate and net exports in each of the following cases? a. The world interest rate rises (r*) b. expansionary fiscal policy at home i.e. domestic output rises c. Foreign demand for domestic goods falls as result of contraction fiscal policy at abroad d. Import restrictions i.e. quota or tariffs on foreign goods e. The domestic prices rise more than foreign prices f. nominal exchange rate e falls
On a graph with national consumption on the vertical axis and real disposable income on the horizontal axis, the slope of the line is almost always greater than one less than one infinitely elastic equal to one undefined
Panel A CandyPopcorned Edit Coordinates (0,0) The image is a graph labeled Panel A that shows a shift in the optimum commodity bundle of a consumer who consumes candies and popcorn. The horizontal axis measures candies, and the vertical axis measures popcorn. There is a downward-sloping, linear line and a downward-sloping, convex curve that are tangent to each other at a point labeled d. There is a rotation of the budget line on the horizontal axis such that the new...
1. A perfectly inelastic demand curve is (Click to select) A. downward-sloping B horizontal C vertical D upward-sloping . Price elasticity of demand is equal to (Click to select) A. -∞ B 0 C -1 2. A perfectly elastic demand curve is (Click to select) A. downward-sloping B horizontal C vertical D upward-sloping . Price elasticity of demand is equal to (Click to select) A. -∞ B 0 C -1 3. Along a linear demand curve that is neither perfectly inelastic nor perfectly elastic, price elasticity...