The effect of an increase in a country's inflation on its net exports is equivalent to
A) a depreciation of its currency.
B) an appreciation of its currency.
C) an increase in the prices of its imports.
D) a decrease in the prices of its exports.
E) a decrease in the price of its currency in term of a foreign currency.
Correct Answer:
Verified
Q10: All else equal, an appreciation of the
Q11: An appreciation of a country's currency
A)decreases its
Q12: In 2015, one dollar was exchanged for
Q13: Assume that one U.S. dollar equals 100
Q14: A depreciation of a country's currency means
A)it
Q16: A decrease in the value of a
Q17: An appreciation of Mexico's peso
A)decreases Mexican exports
Q18: An appreciation of a country's currency means
A)it
Q19: Suppose that yesterday one dollar was exchanged
Q20: An appreciation of the dollar relative to
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