• 2022-06-15
    ‍Assume Countries A, B, and C produce goods that are substitutes of each other and that these countries engage in trade with each other. Assume that Country A's currency floats against Country B's currency, and that Country C's currency is pegged to B's. If A's currency depreciates against B, then A's exports to C should ____, and A's imports from C should ____.‍
    A: decrease; increase
    B: decrease; decrease
    C: increase; decrease
    D: increase; increase
  • C

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    • 0

      Should Canada impose a tariff on imports, one would expect Canada's:(  ) A: Terms of trade to improve and volume of trade   to decrease B: Terms of trade to worsen and volume of   trade to decrease C: Terms of trade to improve and volume of   trade to increase D: Terms of trade to worsen and volume of   trade to increase

    • 1

      Huge imports were ______ the country’s currency reserves.

    • 2

      If<br/>the Fed expects currency holdings to rise, it conducts open market<br/>______to offset the expected _______in reserves. A: purchases;<br/>increase B: purchases;<br/>decrease C: sales;<br/>increase D: sales;<br/>decrease

    • 3

      Johnson company pays the software company $5,000 with a check that they bought. Which the following statement is true? A: Assets are increase and liabilities are increase. B: Assets are decrease and owner’s equity is decrease. C: Assets are decrease and liabilities are decrease. D: Assets are increase and owner’s equity is increase.

    • 4

      An expenditure results either in a(n) ( ) in the asset account or a(n) ( ) in a liability account. A: decrease, decrease B: increase, increase C: increase, decrease D: decrease, increase