In a Small Open Economy, If Consumers Shift Their Preference

question 56

Multiple Choice

In a small open economy, if consumers shift their preference toward Japanese cars, then net exports:

• A)fall, and the real exchange rate falls.
• B)fall, but the real exchange rate remains unchanged.
• C)remain unchanged, but the real exchange rate falls.
• D)increase, and the real exchange rate remains unchanged.

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Definitions:

Visual Workplace

A work environment where information about processes and performance is made visible to employees through displays, charts, and signals to enhance understanding and efficiency.

Low-Cost Visual Devices

Tools and devices designed to visually signal information in the workplace in an efficient and cost-effective manner, often used in lean manufacturing.

Rapid Communication

The swift exchange of information or messages, often facilitated by technology, to speed up decision-making processes.

Non-Value Added Activities

Processes or actions that consume resources but do not directly contribute to the final product or customer value, often targeted for elimination in efficiency efforts.