Export-led growth tends to
A) discourage competition in the global economy.
B) exploit domestic comparative advantages.
C) lead to unemployment among domestic workers.
D) help firms benefit from diseconomies of large-scale production.
E) lower the overall volume of imports.
B
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The relationship between the quantity of real balances demanded and the rate of interest (called the demand for money curve) will ____ when GDP increases because _____.
A) increase (shift right); more transactions balances are needed to make purchases and to hold between pay periods B) increase (shift right); more asset balances are needed for saving or precautionary reasons C) decrease (shift left); fewer transactions balances are needed to make purchases and to hold between pay periods D) decrease (shift left); lower asset balances are needed for saving or precautionary reasons
Which of the following statements about the foreign exchange market is correct?
A) The higher the expected future exchange rate, the smaller is the expected profit from holding dollars and so the smaller is the demand for dollars. B) The higher the expected future exchange rate, the greater is the expected profit from holding dollars and so the greater is the demand for dollars. C) The higher the expected future exchange rate, the smaller is the expected profit from holding dollars and so the greater is the demand for dollars. D) The lower the expected future exchange rate, the smaller is the expected profit from holding dollars and so the greater is the demand for dollars. E) The lower the expected future exchange rate, the greater is the expected profit from holding dollars and so the greater is the demand for dollars.