An increase in the domestic interest rate relative to other interest rates should
A) increase net exports. B) increase investment spending.
C) decrease consumption spending. D) increase government spending.
C
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If revenue in the short run is less than variable costs, what should the firm do?
What will be an ideal response?
According to historical data, what is the effect of a sharp change in the current account on the exchange rate (both in the short and long run)?
A) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to depreciate. B) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to depreciate. C) At first, home currency will appreciate as CA balance rises, but over time, currency will begin to depreciate. D) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to appreciate. E) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to appreciate.