The exchange-rate effect implies that when the price levl increases:       A.  net exports decrease     B.  net exports increase     C.  net exports do not change     D.  net exports could increase, decrease or remain unchanged

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.

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Sub : EconomicsPls answer very fast.I ll upvote. Thank You a small open economy is described by the following equations: C = 50 + .75(Y-T) I = 200 - 20r NX = 200 -50e M/P = Y -40r G = 200 T = 200 M = 3000 P = 3 r* = 5 a. Derive and graph the IS* and LM* curves. b. Calculate the equilibrium exchange rate, level of income, and net exports c. Assume a floating exchange rate. Calculate what happens to the exchange rate, the level of income, net exports and the money supply if the government increases spending by 50. Use graph to illustrate what you find. d. Now assume fixed exchange rate. Calculate what happens to the exchange rate, the level of income, net exports and the money supply if the government increases spending by 50. Use graph to illustrate what you find.

Because of the increased global unrest, citizens in a small open economy are no longer travelling abroad for their holiday. As a consequence, in the long term the net exports of that small open economy will _____    a) increase because the national savings increased as well    b) be unchanged because only the demand for net exports has increased    c) fall because the national savings fell as well    d) be unchanged because only the demand for net exports has decreased

The current account includes changes in a. net exports, net foreign investment income, and import transfers. b. net flows of goods and changes private consumption spending. c. net transfers of non-financial assets and flows of goods and income. d. net foreign investment income, net exports, and net transfers. e. net transfers, net derivatives, and net investment income.

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The effect that a change in the price level has on a country's exports and imports is called the: Exchange rate effect. Interest rate effect. International effect. Multiplier effect.

When we express the value of goods in one country in terms of the same goods in another country, we use: O the real exchange rate. O real GDP. O the nominal exchange rate. O nominal GDP.

1. – Using the following information, determine each one of the theoretical Exchange Rates (E.R.) for December of year 02 according to the Relative PPP Theory. ΜARKET MARKEΤ E.R. E.R. COUNTRY CURRENCY CPI CPI Dec-01 Dec-02 Dec-01 Dec-02 Mexico MXP 231.89 264.3546 19.56 20.15 Turkey TRY (Lira) 498 527.88 5.9419 6.07673 Australia AUD 989 1038.45 1.7759 1.81183 Jaрan JPY 678 745.8 105.866 113.978 United GBP 905.26 986.7334 0.5991 0.617849 Kingdom South Korea KRW (Won) 795.4 874.94 1,658.62 1,793.37 Canada CAD 523.12 554.5072 1.3736 1.4942 U.S.A. USD 1.5 1.56