« previous next »

Author Question: According to historical data, what is the effect of a sharp change in the current account on the ... (Read 54 times)

ericka1

  • Hero Member
  • *****
  • Posts: 544
on: Jun 30, 2018
According to historical data, what is the effect of a sharp change in the current account on the exchange rate (both in the short and long run)?
 
  A) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to depreciate.
  B) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to depreciate.
  C) At first, home currency will appreciate as CA balance rises, but over time, currency will begin to depreciate.
  D) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to appreciate.
  E) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to appreciate.

Question 2

If two countries are very different in relative factor abundance, then empirical support for which of the following would less likely?
 
  A) the Factor Price Equalization Theorem
  B) the Heckscher-Ohlin Theorem
  C) the Law of One Price
  D) the Law of Demand
  E) the Gravity Theorem


kaykay69

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Critical thinking involves analysis in which the nurse examines patient data available from a variet Critical thinking involves analysis in which the nurse examines patient data available from a variet
2006 Data:Top 25 Substances Involved in Human Exposures 2006 Data:Top 25 Substances Involved in Human Exposures
A Hall-effect sensor produces a digital on-off voltage signal whether it is used with a blade or a ... A Hall-effect sensor produces a digital on-off voltage signal whether it is used with a blade or a ...
Carbon Dioxide, Trace Gases, and Climate Change Carbon Dioxide, Trace Gases, and Climate Change
Data for Calculating Productivity Growth in Erewhon Data for Calculating Productivity Growth in Erewhon
The ancestral and modern-day tomato. (b) Phenotypic effect of the fw2.2 transgene in the tomato The ancestral and modern-day tomato. (b) Phenotypic effect of the fw2.2 transgene in the tomato
Video: Protein Structure - Primary, Secondary, Tertiary and Quaternary

For a complete list of videos, visit our video library