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 97 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?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

How do you set yourself apart in a country so rich that of its 4.6 million people, 79,000 are ... How do you set yourself apart in a country so rich that of its 4.6 million people, 79,000 are ...
A high-performance aftermarket air filter often can increase airflow into the engine for more ... A high-performance aftermarket air filter often can increase airflow into the engine for more ...
A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher. A typical camshaft-driven high-pressure pump used to increase fuel pressure to 2,000 PSI or higher.
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
Increase in Surface Area by Mechanical Weathering Increase in Surface Area by Mechanical Weathering
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ... Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...
Video: Introduction to Breast Cancer

For a complete list of videos, visit our video library