Answer: Decrease and Increase
Explanation:
According to the Mundell–Fleming model, in an economy with flexible exchange rates, expansionary fiscal policy will cause the net exports to decrease. Expansionary fiscal policy shifts the IS curve rightwards, as a result BOP surplus created in the economy. So, exchange rate decreases to shift the BOP back to its initial position. As a result of lower exchange rate, exports falls. Hence, net exports decreases.
Expansionary Monetary policy will cause the net exports to increases. Expansionary Monetary policy shifts the LM curve rightwards, as a result BOP deficit created in the economy. So, exchange rate increases to shift the BOP back to its initial position. As a result of higher exchange rate, exports increases. Hence, net exports increases.
Answer:
other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.
Explanation:
This question is incomplete. Please check the attached image for a complete question.
A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.
The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.
I hope my answer helps you
The answers are supply and demand.
Answer: closer to
Explanation:
Emerging economies also referred to as developing countries or emerging markets are countries which are investing in more in their productive capacity ans are also gradually moving away from agriculture as it main occupation and there is increase in industrialization.
Due to emerging markets, the world is moving closer to an economic system that is more favorable for international business. There are more quality goods produced by nations and advancement in technology has also helped the economy.
Explanation:
an entrepreneur is always creative have ideas make best decision thinks before decision
