Log in
Economics
1
answer
0
watching
427
views

Using the IS/LM/BP model and assuming perfect capital mobility, explain:

a. how a decrease in foreign income affects the domestic output.

b. how an appreciation of the domestic currency affects the domestic output.

Watch
1
answer
0
watching
427
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Namita kumari
Namita kumariLv6
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Exports are:

A. Positively related to domestic income and currency depreciation

B. Positively related to income in the rest of the world and currency depreciation

C. Positively related to income in the rest of the world and currency appreciation

D. Positively related to domestic income and currency appreciation

A. In a small open economy in a flexible exchange rate system with perfect capital mobility, there is complete ________ crowding-out of ________ policy.

a) domestic, monetary

b) domestic, fiscal

c) international, fiscal

d) international, monetary

B. If the dollar depreciates against the yen, this tends to ________ our imports of Japanese goods and ________ our exports of goods to Japan, so that our net exports ________.

a) decrease, decrease, decrease

b) increase, decrease, are unchanged

c) decrease, increase, increase

d) decrease, increase, are unchanged

E) increase, increase, increase

C. An increase in the nominal money supply will shift

a) AD up and raise the price level.

b) SAS down and lower the price level.

c) SAS up and raise the price level.

d) AD down and lower the price level.

D. A rise in the price level causes

a) movement down along an LM curve.

b) movement up along an LM curve.

c) the LM curve to shift downward.

d) the LM curve to shift upward.

In a floating exchange rate system, a current account deficit is likely to be corrected by

a) a depreciation in its exchange rate

b) an appreciation of the home currency

c) a prolonged period of hyperinflation

d) expansion of domestic money

e) a decrease in domestic tax rates

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in