A decrease in foreign output would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up
B) rise; shift down
C) fall; shift up
D) fall; shift down
D
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Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. B) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise. C) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall. D) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
Temporary Assistance to Needy Families is a government program with the goal of:
A. redistribution. B. economic growth. C. social insurance. D. None of these is true.
If the Fed paid a lower interest rate to banks on their reserves at the Fed, the money supply would tend to rise
a. True b. False Indicate whether the statement is true or false
Which of the following is a FALSE statement concerning purchasing power parity?
A) Purchasing power parity states that dollars will tend to exchange for pounds at a rate that maintains a constant purchasing power of a given quantity of a currency. B) It is rare to see deviations from the purchasing power parity value of currencies. C) Over the long run, purchasing power parity exerts influence over exchange rates. D) An overvalued dollar buys more in Britain than it does in the United States.