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Author Question: In the long run, ________ dominate exchange rate movements. A) short-run inflation differentials ... (Read 29 times)

swpotter12

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on: Jun 30, 2018
In the long run, ________ dominate exchange rate movements.
 
  A) short-run inflation differentials
  B) long-run inflation differentials
  C) short-run relative price changes
  D) All of the above

Question 2

A country will be able to consume a combination of goods that is not attainable solely from domestic production if
 
  A) the world terms of trade differ from its domestic relative costs.
  B) the country specializes in one product.
  C) the country avoids international trade.
  D) the world terms of trade equal the domestic relative costs.
  E) the country's domestic production value equals world relative value.


jxjsniuniu

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

A


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