quiz 3 - Georgia State University Principles of...

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Unformatted text preview: Georgia State University Principles of Macroeconomics, ECON 2105 Quiz # 3 Key Five multiple choice questions: select the best answer (two points each). 1. Initially, one British pound exchanged for a dollar. Now one British pound exchanges for two dollars. Which of the following statement is true? a. British pound is weaker now therefore its net exports will go up. b. British pound is stronger now therefore its net exports will go up. c. US dollar is stronger now therefore its net exports will go down. d. US dollar is weaker now therefore its net exports will go down. US dollar is weaker now therefore its net exports will go up . Initially, you could buy one pound for a dollar, now you need to pay two dollars to buy the same poound. Pound is stronger (more expensive), your dollar is weaker. Therefore, British net exports will go down, and US net exports will go up. Carefully see, if I change the option (b) from will go up to go down, then (b) will be the right answer. Therefore, you need to make good from what are(b) will be the right answer....
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This note was uploaded on 01/18/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Fall '10 term at Georgia State University, Atlanta.

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quiz 3 - Georgia State University Principles of...

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