Generally speaking, a country whose currency depreciates will experience, as a result,
A. Inflationary pressure because the prices of imports rise.
B. Increasing unemployment in export sectors.
C. Falling interest rates from a capital outflow.
D. Reduced aggregate demand.
Answer: A
Economics
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An increase in the money supply will lower the equilibrium rate of interest.
a. true b. false
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By shutting down, a firm
A) stops receiving revenue but continues to pay variable costs. B) stops receiving revenue and is stuck with its fixed costs. C) avoids its sunk costs as well as its variable costs. D) can avoid paying taxes on its previously earned profits.
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