This topic contains a solution. Click here to go to the answer

Author Question: For this question, assume that the Marshall-Lerner condition does not hold. A reduction in the real ... (Read 124 times)

torybrooks

  • Hero Member
  • *****
  • Posts: 500
For this question, assume that the Marshall-Lerner condition does not hold. A reduction in the real exchange rate will tend to cause which of the following to occur?
 
  A) a reduction in NX and a reduction in foreign output (Y)
  B) a reduction in NX and an increase in domestic output (Y)
  C) an increase in NX and a reduction in Y
  D) an increase in NX and an increase in Y
  E) none of the above

Question 2

When a government reduces its deficits by increasing taxes, in the short run,
 
  A) output returns to potential.
  B) output increases.
  C) interest rate is higher.
  D) IS curve shifts inward to the left.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Jayson

  • Sr. Member
  • ****
  • Posts: 350
Answer to Question 1

A

Answer to Question 2

A





 

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

For a complete list of videos, visit our video library