Which of the following will probably not result in an increase in a country's current account balance (assuming everything else constant)?
A: A decrease in the country's rate of inflation
B: A decrease in the country's national income level
C: An increase in government restrictions in the form of tariffs or quotas
D: An appreciation of the country's currency
E: All of the above will result in an increased current account balance.
A: A decrease in the country's rate of inflation
B: A decrease in the country's national income level
C: An increase in government restrictions in the form of tariffs or quotas
D: An appreciation of the country's currency
E: All of the above will result in an increased current account balance.
举一反三
- 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
- The impact of the appreciation of a country's currency on its import and export revenue is (). A: exports decrease, imports increase B: exports increase, imports decrease C: exports increase, imports increase D: exports decrease, imports decrease
- One implication of an empirical investigation of the Marshall-Lerner condition is that, in the ________, a real ________ in a nation's currency is likely to ________ the country's current account balance. ( ) A: long-run; appreciation; improve B: short-run; depreciation; improve C: long-run; depreciation; improve D: short-run; appreciation; improve
- Governments normally are concerned when their country is running a surplus on the current account of their balance of payments. ( ）
- Which one of the following statements is the MOST accurate? （ ) A: A depreciation of a country's currency makes its goods more expensive for foreigners. B: An appreciation of a country's currency makes its goods more expensive. C: A depreciation of a country's currency makes its goods cheaper for foreigners. D: A depreciation of a country's currency makes its goods cheaper.