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

Author Question: Define devaluation and use a figure to show the effect of a currency devaluation on the economy. ... (Read 133 times)

humphriesbr@me.com

  • Hero Member
  • *****
  • Posts: 550
on: Jun 30, 2018
Define devaluation and use a figure to show the effect of a currency devaluation on the economy.
 
  What will be an ideal response?

Question 2

Government transfer payments like social security and unemployment benefits are
 
  A) included in government purchases.
  B) not included in government purchases.
  C) not included in government purchases, but they are included in the consumption component of GNP.
  D) not included in government purchases, but they are part of the investment component of GNP.
  E) included in government purchases but not in the GNP.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

af

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jun 30, 2018
Answer to Question 1

A devaluation occurs when the central bank raises the domestic currency price of foreign currency. In the figure, the domestic currency is devalued from to . Since nothing in the DD schedule has changed, the new equilibrium at point 2 must be reached by an expansion of the money supply (AA curve shifts outward). Notice also that output has increased from to .

Answer to Question 2

B


humphriesbr@me.com

  • Member
  • Posts: 550
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

The Role of Microfilaments in Cell Movement-Showing Cause and Effect in Biology 2 The Role of Microfilaments in Cell Movement-Showing Cause and Effect in Biology 2
Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa
Drugs and their effect table Drugs and their effect table
The effect of neuron death and synapse rearrangement on the selectivity of synaptic transmission. ... The effect of neuron death and synapse rearrangement on the selectivity of synaptic transmission. ...
Effect of an Increase in Technological Progress Effect of an Increase in Technological Progress
The effect of selection on allele frequency The effect of selection on allele frequency
Video: Green alga life cycle Animation

For a complete list of videos, visit our video library