In a flexible exchange rate regime, an increase in the expected ...

[corkyiscool3328]

In a flexible exchange rate regime, an increase in the expected future exchange rate will cause
 
  A) the IP curve to shift to the left/up.
  B) the IP curve to shift to the right/down.
  C) a movement along the IP curve.
  D) neither a shift nor movement along the IP curve.

Question 2

Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run
 
  A) output per capita will be greater in B than in A.
  B) output per capita will be greater in A than in B.
  C) economic growth will be higher in A than in B.
  D) more information is needed to answer this question.

[annierak]

Answer to Question 1

B

Answer to Question 2

B

[corkyiscool3328]

Excellent

[tranoy]

Gracias!