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

Author Question: Why does the depreciation of a country's currency tend to increase its price level? (Read 85 times)

bclement10

  • Hero Member
  • *****
  • Posts: 560
on: Apr 19, 2019

Question 1

The J-curve effect suggests that the depreciation of a nation's currency may


◦ increase its exports and decrease its imports.
◦ increase its imports and decrease its exports.
◦ have an ambiguous effect on its balance of trade.
◦ lead to economic ruin.

Question 2

Why does the depreciation of a country's currency tend to increase its price level?


◦ domestic buyers tend to substitute imports for domestic products
◦ a currency depreciation makes a country's products less competitive in world markets, so exports fall
◦ a currency depreciation makes imported inputs more expensive
◦ a currency depreciation makes imported inputs less expensive
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by bclement10 on Apr 19, 2019

raili21

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


bclement10

  • Hero Member
  • *****
  • Posts: 560
Reply #2 on: Apr 19, 2019
Excellent


raili21

  • Sr. Member
  • ****
  • Posts: 324
Reply #3 on: Apr 19, 2019
Great! Please up vote :D


« previous next »
 

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning Acute Stress, Glucocorticoid Level, Synaptic Plasticity, and Learning
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
The level of future emissions is closely linked to the rate of population growth The level of future emissions is closely linked to the rate of population growth
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
GDP per Capita by Country Group, 1820–2008 GDP per Capita by Country Group, 1820–2008
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: What is an ecosystem?

For a complete list of videos, visit our video library