Which of the following is most likely to happen if the Thai baht depreciates against the euro?
A. The number of European tourists visiting Thailand will increase.
B. Thailand will have a larger trade deficit with the Euro area.
C. Thai demand for European goods will increase.
D. The money supply in Thailand will increase.
Answer: A
You might also like to view...
Suppose the productivity of labor increases and at the same time the price of capital, which is complementary to labor, increases. As a result, the demand for labor:
A. will increase. B. will decrease. C. may either increase or decrease. D. will not change.
Suppose your bank pays you 4 percent interest per year on your savings account, so that $1,000 grows to $1,040 over a one-year period. If prices increase by 1 percent per year over that time, approximately how much real value do you gain by keeping $1000 in the bank for a year?
A. $0 B. $10 C. $30 D. $50