Author Question: How is an exchange rate depreciation likely to affect imports and exports in the short run and over ... (Read 85 times)

lbcchick · **on:** Jun 30, 2018

How is an exchange rate depreciation likely to affect imports and exports in the short run and over a longer period of time?

What will be an ideal response?

Question 2

The graph above shows the PPC for a country that can produce oil, which is labor intensive, or televisions, which are capital intensive. The country is currently producing at point A and not trading with the rest of the world. With trade, the world price can be represented by slope of the straight line through Point A. Which of the following is a true statement?

A) When this country produces the optimal amount with trade, workers in this country will be better off.
B) When this country produces the optimal amount with trade, capital in this country will be better off.
C) When this country produces the optimal amount with trade, both factors of production will be better off.
D) When this country produces the optimal amount with trade, the income of factors of production will not change.

owenfalvey · **Reply #1 on:** Jun 30, 2018

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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.

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