The depreciation of a country's currency causes the price of imports to
A. Rise and the prices of exports to fall.
B. Fall and the prices of exports to rise.
C. Rise and the prices of exports to rise.
D. Fall and the prices of exports to fall.
Answer: A
Economics
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Figure 4-16
Assume that Figure 4-16 shows the supply of soda. An increase in the price of syrup used in the production of soda will shift supply from
a.
S1 to S2.
b.
S2 to S1.
c.
S2 to S3.
d.
S1 to S3.
Economics
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Economics