Other Things the Same,if the U

question 16

Multiple Choice

Other things the same,if the U.S.real exchange rate appreciates,U.S.net exports

• A)increase and U.S.net capital outflow decreases.
• B)decrease and U.S.net capital outflow increases.
• C)and U.S.net capital outflow both increase.
• D)and U.S.net capital outflow both decrease.

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Definitions:

Price-Elasticity Coefficient

A measure showing the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.

Midpoint Formula

A method used to calculate the elasticity of demand or supply by dividing the percentage change in quantity demanded or supplied by the percentage change in price, using the average of the initial and final values.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.