Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 27, Problem 9RQ
To determine
The impact of the boom in the US related to recession in trading partners.
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Students have asked these similar questions
Suppose that an economy is experiencing large trade deficits. According to pass-through effects, a
devaluation would always improve trade balance, when:
O
both demand for domestic imports and exports are perfectly inelastic.
both supply of domestic imports and exports are perfectly inelastic.
the demand for domestic imports is perfectly inelastic and the supply of domestic exports is perfectly
inelastic.
the supply of domestic imports is perfectly inelastic and the demand for domestic exports is perfectly
inelastic.
Suppose a country has a floating exchange rate and no capital controls. It also has a
recessionary gap. It tackles this with an expansionary fiscal policy. In the final equilibrium
people expect its exchange rate to stay at its new value. Which of the following statements
is false?
a) There will be an initial increase in demand, probably government purchases and
consumer spending.
O b) As demand increases, incomes and money demand start to increase, causing a rise
in the interest rate and, in turn, in the exchange rate.
c) The interest rate must end up at its initial value, so money demand must return to its
original level.
d) Output will end up higher than it was initially.
If the U.S. current-account deficit in 2021 is $965.4495 billion,
a. the U.S. capital-account deficit in 2021 will be $965.4495 billion
O b. the U.S. capital-account surplus in 2021 will be $965.4495 billion
O c. we have no way to know, from the information contained in the question, what the U.S. capital-account
will be in 2021
O d. DO NOT CHOOSE THIS ANSWER.
Chapter 27 Solutions
Microeconomics
Ch. 27.1 - Prob. 1QQCh. 27.1 - Prob. 2QQCh. 27.1 - Prob. 3QQCh. 27.1 - Prob. 4QQCh. 27.A - Prob. 1ADQCh. 27.A - Prob. 1ARQCh. 27.A - Prob. 1APCh. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Prob. 3DQ
Ch. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Prob. 6DQCh. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Prob. 10DQCh. 27 - Prob. 11DQCh. 27 - Prob. 1RQCh. 27 - Prob. 2RQCh. 27 - Prob. 3RQCh. 27 - Prob. 4RQCh. 27 - Prob. 5RQCh. 27 - Prob. 6RQCh. 27 - Prob. 7RQCh. 27 - Prob. 8RQCh. 27 - Prob. 9RQCh. 27 - Prob. 10RQCh. 27 - Prob. 1PCh. 27 - Prob. 2PCh. 27 - Prob. 3PCh. 27 - Prob. 4PCh. 27 - Prob. 5P
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