Decreases in autonomous spending have a contractionary effect and make ________ levels of real income consistent with a given interest rate

A) lower
B) higher
C) constant
D) none of the above.


A

Economics

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What will be an ideal response?

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A) the LM curve to shift down and to the right. B) the LM curve to shift up and to the left. C) the IS curve to shift down and to the left. D) the IS curve to shift up and to the right.

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Indicate whether the statement is true or false

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How does an increase in a country's exchange rate affect its balance of trade?

A) An increase in the exchange rate raises imports, reduces exports, and reduces the balance of trade. B) An increase in the exchange rate reduces imports, raises exports, and reduces the balance of trade. C) An increase in the exchange rate reduces imports, raises exports, and increases the balance of trade. D) An increase in the exchange rate raises imports, reduces exports, and increases the balance of trade.

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