Net exports for the United States
A) were consistently negative for the three decades prior to 1981 but have since turned dramatically positive; as a result, the United States became a net debtor nation in 1985.
B) were consistently positive for the three decades prior to 1981 but have since turned slightly negative.
C) were consistently positive for the three decades prior to 1981 but have since turned dramatically negative; as a result, the United States became a net creditor in 1985.
D) were consistently positive for the three decades prior to 1981 but have since been fluctuating up and down around zero.
E) none of the above.
Correct Answer:
Verified
Q5: Purchasing power parity does not hold up
Q6: The sharp decrease in net exports over
Q7: Changes in the real exchange rate
A) reflect
Q8: The relative prices of U.S. goods sold
Q9: Assuming the usual relationship between the real
Q11: Which of the following could serve
Q12: The trade-weighted exchange rate of the dollar
Q13: The theory of purchasing power parity predicts
A)
Q14: Let expected inflation in the United States
Q15: The strong positive correlation between the size
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