Suppose there is a real depreciation of the dollar. Which of the following may have occurred?
A) foreign currency has become more expensive in dollars.
B) foreign goods have become more expensive to Americans.
C) the foreign price level has increased relative to the U.S. price level.
D) all of the above
E) none of the above
D
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If China has domestic assets of $50 billion, domestic liabilities of $100 billion, and $50 billion in foreign assets, a 10% appreciation of the Chinese yuan will:
A) cause the Chinese domestic assets to increase in value. B) cause the Chinese domestic liabilities to decrease in value. C) cause the overall wealth to decrease by 5%. D) cause the overall wealth to increase by 5%.
The condition, MRSC,C' = 1 + r, describes the representative consumer's
A) investment decision. B) consumption - savings decision. C) current period work - leisure decision. D) future period work - leisure decision.