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Author Question: A real depreciation will tend to cause A) a reduction in exports. B) an increase in imports. C) ... (Read 134 times)

deesands

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on: Jun 30, 2018
A real depreciation will tend to cause
 
  A) a reduction in exports.
  B) an increase in imports.
  C) a reduction in net exports.
  D) an increase in demand for domestic goods.
  E) none of the above

Question 2

For this question, assume that there are decreasing returns to capital, decreasing returns to labor, and constant returns to scale. Now suppose that both capital and labor decrease by 5. Given this information, we know that output (Y) will
 
  A) not change.
  B) decrease by less than 5.
  C) decrease by 5.
  D) decrease by more than 5 but less than 10.
  E) none of the above


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iman

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


deesands

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

Dnite

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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