When The Price Level In Australia Drops Australian Net Exports Will Beca


When the price level in Australia drops, Australian net exports will _______, because of the ________.

decrease; interest rate effect

increase; interest rate effect

increase; international trade effect.

decrease; international trade effect


The velocity of money is constant and the price level in the Quantity Theory of Money is measured by GDP deflator. If money supply growth rate is 3%, then which of the following scenarios is consistent with Quantity Theory of Money ?

Real GDP growth is 3% and inflation is 3%.

Nominal GDP growth rate is 3% and inflation is 3%.

Real GDP is unchanged and inflation is -3%.

None of the above.

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