Open Economy: International Trade and Finance
What happens to the value of a country's currency if there is an increase in the demand for its exports?
What effect does depreciation of a nation’s currency have on that country’s price level index if all other factors remain constant?
What would likely happen to a country's balance of trade if its currency was stronger relative to other currencies?
What is the impact of an increase in net exports on aggregate demand?
What is one likely consequence for net exports when there is an increase in domestic income levels within an open economy operating under floating exchange rates?
Which policy would a government most likely use to decrease the supply of their own currency in foreign exchange markets?
What would most likely happen to the value of a nation’s currency if it experiences higher inflation than its trading partners?
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How does an increase in government spending affect aggregate demand?
What happens to the demand for exports when a currency appreciates?
What is the impact of changes in the foreign exchange market on net exports?