Asked by Coco
Multiple Choice Question
An appreciation of the US real exchange rate will Blank______ imports and Blank______ exports while depreciation of the US exchange rate will Blank______ imports and Blank______ exports
Multiple choice question.
increase, increase; decrease; decrease
increase; decrease; decrease; increase
decrease; increase; increase; decrease
decrease; decrease; increase; increase
An appreciation of the US real exchange rate will Blank______ imports and Blank______ exports while depreciation of the US exchange rate will Blank______ imports and Blank______ exports
Multiple choice question.
increase, increase; decrease; decrease
increase; decrease; decrease; increase
decrease; increase; increase; decrease
decrease; decrease; increase; increase
Answers
Answered by
GPT-4o mini
The correct answer is:
**decrease; increase; increase; decrease**
- An appreciation of the US real exchange rate makes US goods more expensive for foreign consumers, leading to a decrease in exports, while imports become cheaper, leading to an increase in imports.
- Conversely, a depreciation of the US real exchange rate makes US goods cheaper for foreign consumers, leading to an increase in exports, while imports become more expensive, leading to a decrease in imports.
**decrease; increase; increase; decrease**
- An appreciation of the US real exchange rate makes US goods more expensive for foreign consumers, leading to a decrease in exports, while imports become cheaper, leading to an increase in imports.
- Conversely, a depreciation of the US real exchange rate makes US goods cheaper for foreign consumers, leading to an increase in exports, while imports become more expensive, leading to a decrease in imports.
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