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Все вопросы
- … that is higher than in other countries causes a country’s currency to depreciate. If inflation in different countries is equal, ceteris paribus, exchange rates do not change. #51
- If import demand is … the currency supply curve slopes downward. #52
- When the supply curve slopes upwards the foreign exchange market may be unstable. #53
- Because import demand elasticities are larger in the short run than in the long run, instability is more likely in the short run than the long run. #54
- The same conditions that cause short-run instability and long-run stability result in a J curve. The J curve shows that a depreciation can temporarily worsen the balance of trade, while an appreciation can temporarily improve the balance of trade. #55
- A country's balance of payments accounts record is #56
- The phenomenon of an initial worsening and subsequent improvement of the trade balance after a depreciation is known as the J-curve effect. #57
- The law of one price states that a commodity will have the … price in terms of a common currency in every country. #58
- The law follows from commodity arbitrage, which involves buying in the … country if prices are different. #59
- It follows from the law of one price that the dollar price of a commodity in the United States … the pound price of the commodity in Britain multiplied by the spot exchange rate of dollars per British pound. #60