An increase in the real exchange rate (real depreciation of domestic currency) will result in: A. an increase in imports only. B. an increase in net exports. C. a decline in imports. D. a decline in exports.

An increase in the real exchange rate (real depreciation of domestic currency) will result in: A. an increase in imports only. B. an increase in net exports. C. a decline in imports. D. a decline in exports.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An increase in the real exchange rate (real depreciation of domestic currency)

will result in:

an increase in imports only.

an increase in net exports.

a decline in imports.

a decline in exports.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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