According to the lecture of the topic "Output and the Exchange Rate in the Short Run", which one of the following statements is the MOST accurate? NOTE: We assume the definition of the real exchange rate which we learned in class. O a. An increase in the real exchange rate and an increase in disposable income improve the current account. O b. A decrease in the real exchange rate and a decrease in disposable income improve the current account. O c. A decrease in the real exchange rate and an increase in disposable income improve the current account. d. An increase in the real exchange rate and a decrease in disposable income improve the current account. e. An increase in the real exchange rate and a decrease in disposable income lowers the current account.

According to the lecture of the topic "Output and the Exchange Rate in the Short Run", which one of the following statements is the MOST accurate? NOTE: We assume the definition of the real exchange rate which we learned in class. O a. An increase in the real exchange rate and an increase in disposable income improve the current account. O b. A decrease in the real exchange rate and a decrease in disposable income improve the current account. O c. A decrease in the real exchange rate and an increase in disposable income improve the current account. d. An increase in the real exchange rate and a decrease in disposable income improve the current account. e. An increase in the real exchange rate and a decrease in disposable income lowers the current account.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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