Author Question: A devaluation causes which of the following to occur in the medium run? A) an increase in net ... (Read 56 times)

mmm · **on:** Jun 30, 2018

A devaluation causes which of the following to occur in the medium run?

A) an increase in net exports
B) an increase in the price level
C) an increase in output
D) all of the above
E) none of the above

Question 2

Suppose two countries are identical in every way with the following exception. Economy A has a higher saving rate than economy B. Given this information, we know with certainty that

A) steady state consumption in A is higher than in B.
B) steady state consumption in A is lower than in B.
C) steady state consumption in A and in B are equal.
D) steady state growth of output per worker is higher in A than in B.
E) none of the above