Assume that Country X and Country Y are trading partners and the exchange rates are fixed. If prices in Country Y fall, which of the following is expected to happen?
A. Country X will export more.
B. Economy of Country X will be depressed.
C. Net exports will rise for Country X.
D. Country Y will import more.
Answer: B
Economics
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At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's capital stock at the end of year equals
A) 1 machine. B) 2 machines. C) 3 machines. D) 6 machines.
Economics
While the discount rate is "established" by the regional Federal Reserve Banks, in truth, the rate is determined by
A) Congress. B) the president of the United States. C) the Senate. D) the Board of Governors.
Economics