Demand tends to be ________ in the short run than in the long run.

Who gains from exports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from exports?

What will be an ideal response?

A balance of payments crises under fixed exchange rates occurs when

A) a country runs out of foreign reserves. B) a country is in a liquidity trap. C) exports and imports expand beyond some point. D) marginal returns on foreign exchange investments approach zero. E) forward currency markets undergo high volatility.