Suppose There Is a Real Appreciation

question 38

Multiple Choice

Suppose there is a real appreciation.This real appreciation is more likely to cause a reduction in net exports when

• A)domestic output is relatively low.
• B)foreign output is relatively high.
• C)the Marshall-Lerner condition does not hold.
• D)imports are not at all sensitive to price changes.
• E) exports and imports are relatively sensitive to price changes.

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Definitions:

Electrophilicity

A chemical property of a compound to act as an electrophile, with a tendency to seek out electrons in a reaction due to a lack of electron density.

Hydroxyls

Functional groups consisting of an oxygen atom bonded to a hydrogen atom (-OH); characteristic of alcohols.

Tosylate Ion

A negative ion derived from tosylate (p-toluenesulfonate), often used as a leaving group in organic synthesis reactions.

Leaving Group

An atom or group that detaches from a molecule in a chemical reaction, making way for the formation of a new bond.