In the short run, with prices fixed, how would an increase in government spending affect the DD-AA equilibrium?
A) It will increase output and appreciate the currency.
B) It will increase output and depreciate the currency.
C) It will decrease output and appreciate the currency.
D) It will decrease output and depreciate the currency.
E) It will increase output and have no effect on the currency.
A
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The interest rate in Canada rises while the interest rate in the United States does not change. The
A) demand curve for Canadian dollars will shift leftward. B) demand curve for Canadian dollars will shift rightward. C) demand curve for U.S. dollars will shift rightward. D) demand curves for both Canadian and U.S. dollars will remain unchanged.
Options on individual stocks are not listed on the
A) New York Stock Exchange. B) American Stock Exchange. C) Nasdaq. D) Pacific Stock Exchange.
The price of automobiles has increased sharply lately. As a result, automobile dealers have noticed that: a. demand has increased
b. demand has decreased. c. quantity demanded has increased. d. quantity demanded has decreased.
If the federal funds rate were below the level the Federal Reserve had targeted, the Fed could move the rate back towards its target by
a. buying bonds. This buying would increase the money supply. b. buying bonds. This buying would reduce the money supply. c. selling bonds. This selling would increase the money supply. d. selling bonds. This selling would reduce the money supply.