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-Which of the following options compete to determine whether the current account improves or worsens following a rise in the real exchange rate?

-Which of the following options compete to determine whether the current account improves or worsens following a rise in the real exchange rate?
Answer

Appreciation and depreciation

Crowding out effect and producers effect

Volume effect and value effect

Colume effect and inflation

-Which of the following options would NOT cause the real exchange rate to rise?
Answer

A rise in the exchange rate, E

Depreciation of the home currency

A right shift of the aggregate demand curve

A rise in foreign prices, P

-Monetary expansion causes the current account balance to increase in the short run. Discuss this statement. Is the same true for fiscal expansion?
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Which of the following options compete to determine whether the current account
improves or worsens following a rise in the real exchange rate?
Answer
Volume effect and value effect
Which of the...

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