Assume that Country X and Country Y are trading partners and the exchange rates are fixed. If prices in Country Y rise, all of the following are expected to happen except
A. Country X will export more.
B. Country Y will import more.
C. net exports will rise for Country X.
D. trade will boost the GDP of Country Y.
Answer: D
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In the 1990s, Oprah Winfrey, the former national talk-show host, discouraged Americans from eating beef. She argued beef consumption could create major health problems, and, as a result, beef purchases and the price of beef fell substantially
Which of the following occurred? A) The supply curve of beef shifted to the left. B) The demand curve for beef shifted to the left. C) The supply curve of beef shifted to the right. D) The demand curve for beef shifted to the right. E) Neither the supply curve nor the demand curve for beef had changed.
Among potential stores of value, money
A) offers the highest rate of return. B) increases in value during periods of inflation. C) provides more services than the other assets. D) has the advantage of being the most liquid asset.