Macroeconomic Issues and Analysis

A. it allows countries to exploit their comparative advantage, more fully
B. firm could more readily exploit
C. economies of scal
D. it intensified competition
E. it is easier to book holidays in member countries

A. a nominal exchange rate, floated
B. a real exchange rate, pegged
C. a purchasing power parity, pegged
D. a real exchange rate, floated

A. appreciate
B. depreciate
C. revalue
D. be in short supply

A. depreciation
B. appreciation
C. fall
D. devaluation

A. enhances
B. undermines
C. encourages
D. facilitates

A. increased
B. unaffected
C. reduced
D. None of these

A. current account
B. interest rate
C. tax
D. price

A. increase
B. reduce
C. do nothing to
D. None of the above

A. reduce its stock of foreign assets
B. increase its stock of foreign assets
C. increases its savings
D. increases its foreign currency reserves

A. rise
B. fall
C. not change
D. fluctuate