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Author Question: Assuming that the exchange rate rises by 5 percent, hence, the dollar volume of exports rises by 5 ... (Read 42 times)

neverstopbelieb

  • Hero Member
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  • Posts: 534
on: Jun 30, 2018
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

  • Sr. Member
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  • Posts: 334
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


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