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Homework answers / question archive / Question 29 If income in the United States rises relative to income in Japan, the yen should appreciate against the dollar, ceteris paribus
Question 29 If income in the United States rises relative to income in Japan, the yen should appreciate against the dollar, ceteris paribus. True False
Question 30 If women are not allowed to own property or inherit Wealth but men are, this is an example of comparative advantage. True False
Question 31 American poverty is more about absolute deprivation, and poverty in the rest of the world is more about relative deprivation. True False
Question 12 of 50 Question 32 2 points Save As If there are no reserves, domestic adjustments to payment imbalance under fand exchange rates require Surplus countries to forskel omployment and delicit countries to forsake price stability True False
Ans (29) True
Explanation-----
If income in the US rises relative to income of Japan ,it means the imports by americans will rise.More imports lead to more Expenditure on imports from Japan..It means more demand for yen and it finally leads to increase in foreign exchange value of yen agaist dollars.
Ans---(30) false
Explanation-----
If women are not allowed to own or inherited wealth, it is called gender discrimination.
Comparative advantage is an economic term that refers to nation's ability to produce goods at lower opportunity cost as compared to other nation.
Ans(31) false
Explanation-----
Absolute deprivation refers to lack of capacity to afford basic necessities while relative deprivation refers to poverty in relation to other country / region/ people. American poverty is not an absolute deprivation rather it is relative deprivation.
Ans( 32) true
Explanation-----
If a country has asverse BoP ,it experiences a net loss of gold under fixed exchange system which will lead to deflationary gap .Now the country must reduce the price level by choosing to leave the gold standard ,which will increase exports and correct the deficit BOP
In case there is surplus BOP, the country is in inflationary gap, so the domestic adjustment under fixed exchange rate requires the economy to leave full employment Equilibrium and reduce the aggregate demand.
