Which of the following ideas of Adam Smith has religious overtones?
a. comparative advantage
b. aggregate demand
c. perfect competition
d. rational expectations
e. invisible hand
e
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When there are currency depreciations or appreciations, how is the external wealth of a nation affected?
A) It rises (along with its GDP) when there is a depreciation and falls with an appreciation. B) It usually does not change because external wealth is related to gold and capital. C) The change in wealth depends on the exchange rates with the currencies in which the assets or liabilities are denominated. D) If all assets are domestic and all liabilities are foreign, wealth always rises when there is any kind of exchange rate shift.
Ceteris paribus, a real depreciation of the dollar will decrease net exports in the United States
Indicate whether the statement is true or false