A decrease in the currency exchange rate would shift the aggregate demand curve rightward, resulting in a higher equilibrium income and price level in the long-run
Indicate whether the statement is true or false
FALSE
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Which of these faulty economic policies was adopted by President Hoover during the Great Depression?
a. An increase in tax rate b. An increase in trade barriers c. A decrease in tax rate d. A decrease in government spending e. An increase in government spending
If Jim pays $1000 to John: a. GDP will increase by $1000
b. GDP will increase, but we cannot determine by what amount. c. nominal GDP will increase, but we cannot be sure if real GDP will increase or decrease. d. we need more information in order to determine whether or how much GDP will change.
You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?
a. A lump-sum tax would achieve the second goal but not the first. b. A regressive tax would achieve the second goal but not the first. c. A progressive tax could achieve both goals. d. A proportional tax could achieve the second goal but not the first.
The largest element of the currency component of M1 is
A. coins. B. United States Notes. C. silver certificates. D. Federal Reserve Notes.