Assuming that the exchange rate rises by 5 percent, hence, the ...

[neverstopbelieb]

Assuming that the exchange rate rises by 5 percent, hence, the dollar volume of exports rises by 5 percent, then foreign exchange earnings would
 
  a. remain constant.
  b. increase by 5 percent.
  c. actually decrease by 5 percent.
  d. increase by 10 percent.

Question 2

If interest rates rise, then velocity should ____ in the Keynesian model and _____ in the Monetarist model.
 
  a. rise; fall.
  b. stay the same, stay the same.
  c. rise, stay the same.
  d. fall; rise.
  e. none of the above

[olivia_paige29]

Answer to Question 1

A

Answer to Question 2

C