The balance of trade can only worsen if income ____ relative to absorption ?

Related Mcqs:

The analysis considers the ability of domestic and foreign price of adjust to devaluation in the short run ?

A. pass through B. absorption C. adjustment mechanism D. currency contract period...

If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?

A. shorten the amount of time in which the depreciation leads to smaller trade deficit B. shorten the amount of time in which the depreciation leads to smaller trade surplus C. lengthen the amount of time in which the depreciation leads to smaller trade deficit D. lengthen the amount of time in which the depreciation … If foreign manufacturing costs and profit margins in response to a depreciation in the U.S dollar the effect of these actions is to ?Read...

Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?

A. appreciation in the value of both currencies B. depreciation in the value of both currencies C. appreciation in the value of the yen against the mark D. depreciation in the value of the yen against the mark...

Complete currency pass through arises when a 10 percent depreciation in the value of the dollar causes U.S?

A. import prices to fall by 10 percent B. import prices to rise by 10 percent C. export prices to rise by 10 percent D. export prices to fall by 10 percent...

Suppose that the United Kingdom devalues the pound if both exports and imports are written in terms of pounds then the United Kingdom balance of trade during a currency contract period ?

A. improves B. worsens C. is unaffected D. falls for a while before increasing...