This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why does the depreciation of a country's currency tend to increase its price level? (Read 35 times)

bclement10

  • Hero Member
  • *****
  • Posts: 560
on: Apr 19, 2019

Question 1

The J-curve effect suggests that the depreciation of a nation's currency may


◦ increase its exports and decrease its imports.
◦ increase its imports and decrease its exports.
◦ have an ambiguous effect on its balance of trade.
◦ lead to economic ruin.

Question 2

Why does the depreciation of a country's currency tend to increase its price level?


◦ domestic buyers tend to substitute imports for domestic products
◦ a currency depreciation makes a country's products less competitive in world markets, so exports fall
◦ a currency depreciation makes imported inputs more expensive
◦ a currency depreciation makes imported inputs less expensive
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by bclement10 on Apr 19, 2019

raili21

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


bclement10

  • Hero Member
  • *****
  • Posts: 560
Reply #2 on: Apr 19, 2019
Excellent


raili21

  • Sr. Member
  • ****
  • Posts: 324
Reply #3 on: Apr 19, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Darwin observed that tortoises on islands that are arid tend to have saddle-shaped shells, allowing Darwin observed that tortoises on islands that are arid tend to have saddle-shaped shells, allowing
Martin Van Buren, sitting uncomfortably for this engraving, would eventually ascend to the presidenc Martin Van Buren, sitting uncomfortably for this engraving, would eventually ascend to the presidenc
Muscle structure seen at the EM level Muscle structure seen at the EM level
Kyoto Protocol encourages industry to innovate and reduce the level of emissions Kyoto Protocol encourages industry to innovate and reduce the level of emissions
Cost of Copying for the Follower Country Cost of Copying for the Follower Country
Share of Hours Worked by Education Level, 1940–2008 Share of Hours Worked by Education Level, 1940–2008
Video: Parathyroid hormone (bone resorption) & Calcitonin (bone deposition)

For a complete list of videos, visit our video library