A currency depreciation
A. reduces aggregate demand and increases aggregate supply.
B. reduces aggregate demand and aggregate supply.
C. increases aggregate demand and reduces aggregate supply.
D. increases aggregate demand and aggregate supply.
Answer: C
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Keynesians believe that the difference between using an increase in the money supply compared with an increase in government spending to increase aggregate demand in the event of a recession is that if government spending is increased, ________ will
be ________ than if the money supply is increased. A) real interest rate; higher B) real interest rate; lower C) the price level; lower D) the price level; higher
As shown in the graph, when a government imposes a quota, consumer surplus will:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. decrease by EFGH.
B. increase by EFGH.
C. decrease by FG only.
D. increase to ABCD.
A good is nonrival in consumption if it is not practical to exclude people who don't pay for it from enjoying its benefits.
Answer the following statement true (T) or false (F)
The yield curve is
A) the term structure of interest rates. B) the relation between maturity and yield of a bond. C) maturity. D) both A and B E) all of the above