The functional relationship between the trade balance and the real exchange rate is:
a. a negative, or decreasing, function.
b. a positive, or increasing, function.
c. a parabolic function.
d. impossible to quantify because there are so many unknown variables.
Ans: b. a positive, or increasing, function.
Economics
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An increase in the interest rate in the United States compared to the interest rate in Great Britain will
A) increase the U.S. interest rate differential. B) increase the demand for pounds. C) shift the demand curve for dollars rightward. D) Both answers A and C are correct.
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Economic profit always exceeds accounting profit
a. True b. False Indicate whether the statement is true or false
Economics