How would the real exchange rate need to change to get aggregate expenditure to increase?
A. Increase
B. Decrease
C. Remain constant
D. Exchanges rates don’t generally affect aggregate expenditure.
B. Decrease
You might also like to view...
Use the following table with data for a private (no government) closed economy to answer the next question. All figures are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$540$540560555580570600585620600640615660630If planned investment is $25 billion, then aggregate expenditures at the income level of $560 billion will be
A. $565 billion. B. $585 billion. C. $580 billion. D. $595 billion.
Suppose the government of South Island fixes the exchange rate of its currency, the Islandia, in terms of the U.S. dollar. Initially the exchange rate is set at $1 per Islandia. Later the government changes the exchange rate to $2 per Islandia. This is an example of a(n):
A. appreciation B. devaluation C. depreciation D. revaluation
This Scenario addresses the economic concept of
A) financial intermediaries. B) deposit insurance. C) retained earnings. D) present value.
People buy insurance
a. because they are risk averse. b. to defer consumption. c. because of externalities. d. to maximize their welfare. e. to ensure against poor health.