Under flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is
A) the currency appreciates, and output falls.
B) the currency depreciates, and output falls.
C) the currency depreciates, and output increases.
D) the currency depreciates, and output remains constant.
E) the currency appreciates, and output increases.
B
Economics
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In 2006, the United States had
A) a surplus in the current account. B) a balance in the current account. C) a deficit in the current account. D) From 2006 data, it is too difficult to determine whether a surplus or a deficit existed in the current account. E) a positive balance of net financial flows.
Economics
Given the graph shown, the quantity that would be associated with the price of $1 in a supply table would be:
A. 3. B. 2. C. 1. D. 0.
Economics