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neddhelp4exam neddhelp4exam
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6 years ago
If devaluation does not improve the BOT, but only the BOP, this implies that
 
  A) the capital account is in deficit.
  B) the current account is in surplus.
  C) the improvement comes in the capital account.
  D) Both B and C.


Question 2 - It is argued that if a rich high wage country such as the United States were to expand trade with a relatively poor and low wage country such as Mexico, then U.S. industry would migrate south, and U.S. wages would fall to the level of Mexico's.
 
  What do you think about this argument?
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wrote...
#1
6 years ago
[ 1 ]  C

[ 2 ]  The student may think anything. The purpose of the question is to set up a discussion, which will lead to the models in the following chapters.
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