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Suppose GDP falls in the United States, but it doesn't fall in Bahrain. What is the short-run impact of this change in GDP on the value of the U.

Suppose GDP falls in the United States, but it doesn't fall in Bahrain. What is the short-run impact of this change in GDP on the value of the U.S. dollar (USD), the value of the Bahraini dinars (BHD), and U.S. net exports (based on the changing value of the U.S. dollar)?


USD / BHD / Net Export


a)   Appreciate / Depreciate / Increase

b)  Appreciate / Depreciate / Decrease

c)   Depreciate / Depreciate / Increase

d)  Depreciate / Appreciate / Decrease

e)   Depreciate / Appreciate / Increase

Top Answer

e)   Depreciate... View the full answer

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