Author Question: A fall in the demand for U.S. exports would result in a rise in the exchange rate when a. there ... (Read 67 times)

michelleunicorn · **on:** Jun 30, 2018

A fall in the demand for U.S. exports would result in a rise in the exchange rate when

a. there is no capital mobility and exchange rates are allowed to float.
b. there is capital mobility.
c. exchange rates are allowed to float.
d. the country has a balance of payments surplus.
e. both c and d.

Question 2

In the monetarist view, the long-run Phillips curve is

a. horizontal.
b. downward sloping.
c. downward sloping but steeper than the short-run curve.
d. downward sloping but flatter than the short-run curve.
e. none of the above.