A rise in the real exchange rate will ____________ the competitiveness of the domestic economy

Related MCQs

• Suppose the government grants a subsidy to domestic producers of an import-competing good. The subsidy tends to result in deadweight losses for the domestic economy in the form of the:
• Which among the following is taken as the real measure of a country's international competitiveness?
• If the exchange rate is above the equilibrium level then in a floating exchange rate system:
• If the exchange rate is below the equilibrium level then in a floating exchange rate system:
• Which of the following exchange rate policies uses a target exchange rate, but allows the target to change?
• Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies. This is because, unlike domestic subsidies, import tariffs and quotas:
• If interest rate parity holds, then the one-year forward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect.
• The Exchange rate is kept the same in all parts of the market through
• The foreign exchange rate is NOT
• Under a fixed exchange rate system, ____________________are official changes in the value of a country's currency relative to other currencies.