Author Question: In which market should you begin your analysis if immigration of low-skilled workers increases? a. ... (Read 35 times)

ss2343 · **on:** Jun 30, 2018

In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Foreign exchange market, with a shift in the supply of domestic currency
b. Foreign exchange market, with a shift in the demand for domestic currency
c. Real goods market with, a shift in aggregate supply
d. Real goods market with, a shift in aggregate demand
e. Real loanable funds market, with a shift in the supply of real loanable funds

Question 2

How can inflation affect the international competitiveness of a country?
a. Through an increase in nominal interest rates.
b. Through an increase in real interest rates.
c. The competitiveness is harmed by any inflation rate that is higher than in other countries, as long as it is offset by exchange rate changes.
d. The competitiveness is harmed by any inflation rate that is higher than in other countries, as long as it is not offset by exchange rate changes.
e. Inflation is a domestic issue and therefore does not affect the international competitiveness