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Question: Using the IS/LM and NFI/NX diagrams, show how the following changes in the economy would affect the value of the dollar and the net export balance.

(A) Domestic auto manufacturers offer zero-interest financing rates on new cars.

(B) Japan changes its policy, encourages more US imports.

(C) War in the Middle East causes oil prices to double for an extended period.

(D) New, ‘‘thinking'' computers usher in new age of technological marvels.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93115058

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