If the demand effect dominates during a currency depreciation, then

a. real GDP should fall.
b. real GDP should increase.
c. the price level should fall.
d. net exports should decrease.

b

Economics

You might also like to view...

Prices provide the rationing function best when

A) prices are flexible. B) prices are inflexible. C) they are used in conjunction with queuing. D) price controls are in place and ration coupons are used too.

Economics

Monopolistically competitive firms produce differentiated products

Indicate whether the statement is true or false

Economics