Which of the following is NOT a result of a permanent fall in foreign demand on one country's exports under floating exchange rate? ( )
A: A reduction in output by a smaller degree compared to temporary fall in demand
B: A raised level of unemployment
C: The AA curve shifts upwards due to the increased expected long-run exchange rate.
D: Depreciation in home country's currency
A: A reduction in output by a smaller degree compared to temporary fall in demand
B: A raised level of unemployment
C: The AA curve shifts upwards due to the increased expected long-run exchange rate.
D: Depreciation in home country's currency
举一反三
- Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate? ( ) A: The AA curve shifts downwards due to reduction of money supply. B: A fall in aggregate output C: A fall in the home interest rate D: The DD curve shifts to the left due to reduction of aggregate demand.
- If the demand for Home exports decreased abroad, the Home fall in output would be greatest______. ( ) A: if the decrease was permanent and the exchange rate was fixed. B: if the decrease was temporary and the exchange rate was fixed. C: if the decrease was temporary and the exchange rate was floating. D: if the decrease was permanent and the exchange rate was floating.
- Under a floating exchange rate, the government or central bank ties the official exchange rate to another country's currency or to the price of gold.
- The price of one country's currency in units of another currency or commodity is the ________. A: foreign interest rate B: foreign currency exchange rate C: par value D: international rate
- The AA schedule shows________. ( ) A: Exchange rate and output pairs at which only the foreign exchange market is in equilibrium. B: Interest rate and output pairs at which only the foreign exchange market is in equilibrium. C: Interest rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium. D: Exchange rate and output pairs at which the foreign exchange market and the domestic money market are in equilibrium.