A U.S. fast food restaurant chain sells dollars for Argentinean pesos and then uses the pesos to buy Argentinean beef. Which of the following do these transactions increase?
a. Argentinean net capital outflow and Argentinean net exports
b. only Argentinean net exports
c. only Argentinean net capital outflow
d. neither Argentinean net exports nor Argentinean capital outflow
a
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Which of the following is an exogenous variable in our model of the goods market in Chapter 3?
A) consumption (C) B) saving (S) C) disposable income (YD) D) government spending (G) E) none of the above
Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?
a. An increase in the demand for domestic goods in the foreign market b. A decrease in total imports made by the domestic country c. A decrease in the interest rates in the domestic country d. An increase in the short-term foreign investments e. An increase in domestic production of import substitutes