As the economy moves up and to the left along the IS curve, which of the following will occur when exchange rates are flexible?

A) investment spending decreases
B) consumption decreases
C) the domestic currency appreciates
D) all of the above
E) none of the above


D

Economics

You might also like to view...

Scarcity can be eliminated by

A) abolishing competition. B) abolishing capitalism. C) abolishing money. D) all of the above. E) none of the above.

Economics

What is the Nash equilibrium of this simultaneous game?

a. Steal, Vigilant b. Steal, Not vigilant c. Not steal, Vigilant d. The game has no Nash equilibrium

Economics

The purchases and sales of international reserve assets such as dollars, foreign exchanges, gold, and special drawing rights (SDRs) by a nation's central bank is recorded in the _____

a. current account b. capital account c. official reserve account d. savings account

Economics

Consider two points on the PPF: point A, at which there are 50 apples and 40 pears, and point B, at which there are 46 apples and 41 pears. If the economy is currently at point A, the opportunity cost of moving to point B is

What will be an ideal response?

Economics