How is an exchange rate depreciation likely to affect imports and exports in the short run and over a longer period of time?

What will be an ideal response?

In the short run, the value of imports may increase, increasing the current account deficit. It may take many months before it causes exports to rise and imports to fall.

Economics

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Price elasticity of supply is defined as

A) the quantity supplied divided by the quantity demanded. B) the change in the quantity supplied divided by the change in the quantity demanded. C) the percentage change in the quantity supplied divided by the percentage change in price. D) the percentage change in the quantity supplied divided by the percentage change in the quantity demanded.

Economics

Refer to Table 2-14. Ireland has a comparative advantage in the production of

A) both products. B) motorcycles. C) guitars. D) neither product.

Economics