Answer to Question #137209 in Macroeconomics for December

Question

51. Assume the local currency weakens against the major currencies. This will result in…
a) a decrease in the employment level.
b) an increase in the net export.
c) a fall in the purchasing power of local currency.
d) an increase in the purchasing power of local currency.
[1] a and b
[2] b and c
[3] c
[4] a and d
[5] a, b, c and d

Answer 1

Solution:

The correct answer is 2

b.). an increase in the net export

c.). a fall in the purchasing power of local currency