I
ter
atio
alEco
omics8eKrugma
Chapter16Outputa
dtheExcha
geRatei
theShortRu
161Determi
a
tsofAggregateDema
di
a
Ope
Eco
omy
1Howdoesa
i
creasei
therealexcha
gerateaffectexportsa
dimportsAExportsi
creaseimportsdecreaseBExportsdecreaseimportsi
creaseCExportsi
creaseimportscha
geambiguouslyDExportscha
geambiguouslyimportsdecreaseEExportsi
creaseimportsareco
sta
t
A
swerCQuestio
StatusPreviousEditio
2Whicho
eofthefollowi
gstateme
tsisthemostaccurateAForassetmarketstoremai
i
equilibriumarisei
domesticoutputmustbeaccompa
iedbyadepreciatio
ofdomesticcurre
cyallelseequalBForassetmarketstoremai
i
equilibriumafalli
domesticoutputmustbeaccompa
iedbyadepreciatio
offoreig
curre
cyallelseequalCForassetmarketstoremai
i
equilibriumarisei
domesticoutputmustbeaccompa
iedbya
appreciatio
ofdomesticcurre
cyallelseequalDForassetmarketstoremai
i
equilibriumafalli
domesticoutputmustbeaccompa
iedbya
appreciatio
ofdomesticcurre
cyallelseequalENo
eoftheabove
A
swerCQuestio
StatusNew
3Whicho
eofthefollowi
gstateme
tsismostaccurateAI
ge
eralco
sumptio
dema
drisesbylesstha
disposablei
comeBI
ge
eralco
sumptio
dema
drisesbymoretha
disposablei
comeCI
ge
eralco
sumptio
dema
drisesbymoretha
i
comeDI
ge
eralco
sumptio
dema
drisesbythesameamou
tasdisposablei
comerisesENo
eoftheabove
A
swerAQuestio
StatusPreviousEditio
4Thecurre
taccou
tbala
ceisAthesupplyofacou
trysexportslessthecou
trysow
dema
dforimportsBthedema
dforacou
trysexportsplusthecou
trysow
dema
dforimportsCthecou
trysow
dema
dforimportslessthedema
dforacou
trysexportsDthedema
dforacou
trysexportslessthecou
trysow
dema
dforimportsENo
eoftheabove
A
swerDQuestio
StatusPreviousEditio
5Thedomesticcurre
cypriceofareprese
tativeforeig
expe
diturebasketisAPthedomesticpricelevelBEthe
omi
alexcha
gerateCPtimesEthedomesticpriceleveltimesthedomesticpricelevelDPtheforeig
pricelevelEPtimesEtheforeig
priceleveltimesthe
omi
alexcha
gerate
A
swerEQuestio
StatusPreviousEditio
1
f6Curre
taccou
tisgive
bytheequatio
ACAIMEXmeasuredi
termsofdomesticoutputBCAIMEXmeasuredi
termsofforeig
outputCCAEXIMmeasuredi
termsofdomesticoutputDCAEXIMmeasuredi
termsofforeig
outputENo
eoftheabove
A
swerCQuestio
StatusNew
7Thedomesticcurre
cypriceofareprese
tativedomesticexpe
diturebasketisAPthedomesticpricelevelBEthe
omi
alexcha
gerateCPtimesEthedomesticpriceleveltimesthedomesticpricelevelDPtheforeig
pricelevelEPtimesEtheforeig
pricer