What are the economic effects of a currency appreciation?

a. It will decrease aggregate demand and aggregate supply, so that output will certainly fall, and prices may fall as well.
b. It will increase aggregate demand and aggregate supply, so that output will certainly rise, and prices may rise as well.
c. It will increase aggregate demand and decrease aggregate supply, so that prices will certainly rise and output may rise as well.
d. It will decrease aggregate demand and increase aggregate supply, so that prices will certainly fall and output may fall as well.


d

Economics

You might also like to view...

Use the following supply and demand graph to answer the question below.In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. If government corrects this externality problem and shifts production to the socially optimal level, then the product price will be equal to

A. 0G. B. 0D.  C. 0F. D. 0E.

Economics

According to the text, Zambia faces decreasing living standards because

a. it is hoarding gold b. the kwacka is rising in value relative to the dollar c. it has a positive balance on its current account d. it has taken steps to reduce its international debt e. its debt service is relatively high

Economics

Business owners who care only about maximizing profits are

a. at an advantage when competing against those who practice employment discrimination. b. more concerned about racial discrimination than gender discrimination. c. likely to be replaced by discriminating businesses. d. likely to discriminate against certain groups of workers.

Economics

Autonomous consumption

A. is measured by the slope of the consumption function. B. is measured by the intercept of the consumption function and the Y-axis. C. is equal to the minimum savings. D. is the reciprocal of consumption.

Economics