Which of the following statements is correct?

I. A drop in the foreign exchange value of the dollar would decrease aggregate demand
II. A decrease in the amount of money in circulation would increase aggregate demand

A) I only B) II only C) Both I and II D) Neither I nor II


D

Economics

You might also like to view...

You're the president of the United States and your economic advisor tells you that the economy is in a state of stagflation. Are you happy? Stagflation refers to

a. inflation and low unemployment b. high unemployment and low levels of inflation c. high inflation, high unemployment, and low economic growth d. low inflation, low unemployment, and low economic growth e. low inflation, low unemployment, and high economic growth

Economics

Which of the following is an example of an innovation that can lead to new investment and spur the economic growth of a nation?

a. Horizontal drilling and hydraulic fracturing resulting in the discovery of new sources of shale gas in the U.S. b. Outsourcing the manufacturing units of a U.S. shoe-making company, resulting in the reduction of overhead costs c. A tire manufacturer laying off some of its workers to increase its profit margin d. An automobile-manufacturing company using cheaper machines for its main product line

Economics

Suppose the observed annual quantity of steel exchanged in the European market is 30 million metric tons, and the observed market price is 90 euros per ton. If the linear demand function for steel takes the form Q = a - 0.9P, what is an appropriate value for the intercept coefficient a?

a = -111 a = 51 a = -51 a = 111

Economics

In the above figure, when real disposable income is less than 600, then

A) consumption is less than disposable income. B) consumption is the same as disposable income. C) consumption is more than disposable income. D) the MPC will fall.

Economics