A common response to stop a depreciation of a currency is to use ...

[dejastew]

A common response to stop a depreciation of a currency is to use contractionary monetary policy, which could lead to a recession.
 
  Indicate whether the statement is true or false

Question 2

After trade opens, the short run impact on the income of the specific factor that is relatively scarce will be
 
  A) a decrease in its income.
  B) an increase in its income.
  C) no change in its income.
  D) indeterminate, income effects are not possible to know.

[ong527]

Answer to Question 1

TRUE

Answer to Question 2

A