Author Question: Suppose monetary policy results in the exchange rate falling. As a result, A) exports do not ... (Read 86 times)

RODY.ELKHALIL · **on:** Jun 29, 2018

Suppose monetary policy results in the exchange rate falling. As a result,

A) exports do not change because they are autonomous and imports decrease.
B) net exports decrease.
C) exports increase and imports increase.
D) exports decrease and imports decrease.
E) net exports increase.

Question 2

Sammy has a drone that he values at 1,500. Dean values the same drone at 2,000. Sammy decides to sell the drone to Dean for 1,800. If the government imposes a 250 tax on the sale of drones,

A) Sammy and Dean would not be able to complete the transaction.
B) Sammy and Dean would still be able to complete the transaction.
C) the tax would cause a deadweight loss of 500.
D) Both A and C are correct.