In the short run, a temporary increase
In the short run, a temporary increase in fiscal policy causesA.a shift of the DD curve to the left, an increase in output, and currency appreciation.B.a shift of the DD curve to t...
In the short run, a temporary increase in the money supply
A.shifts the DD curve to the right, increases output, and appreciates the currency.B.shifts the AA curve to the left, increases output, and depreciates theC.shifts the AA curve to ...
In the short run, a temporary increase in the money supply
A.shifts the AA curve to the right, increases output, and depreciates the currency.B.shifts the AA curve to the left, increases output, and depreciates theC.shifts the AA curve to ...
Which one of the following statements is the most accurate?
A.A rise in domestic real income raises aggregate demand for homeB.A rise in domestic real income decreases aggregate demand for home output because of the increased demand forC.A ...
Which one of the following statements is the most accurate?
A.An increase in disposable income improves the currentB.An increase in disposable income does not affect the currentC.An increase in disposable income worsens the currentD.An incr...
Which one of the following statements is the most accurate?
A.An increase in the real exchange rate and an increase in disposable income improve the current account.B.A decrease in the real exchange rate and a decrease in disposable income ...
Imagine that the economy is at a point on the DD-AA
Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD, where both the output and asset markets are out of equilibrium. Which first action is tru...
How is the AA schedule derived?
A.The AA schedule has a positive slope because an increase in output leads to a depreciation of theB.The AA schedule has a negative slope because an increase in output leads to a d...
Which of the following are true in terms
Which of the following are true in terms of the current account balance?A.Monetary expansion increases the current accountB.Monetary expansion decreases the current accountC.Fiscal...
In the short run, with prices fixed,
In the short run, with prices fixed, how would an increase in government spending affect the DD-AA schedule?A.It will increase output and appreciate theB.It will increase output an...
In the long-run equilibrium,
In the long-run equilibrium, after a permanent money-supply increase there follows:A.an increase in exchange rate,B.a decrease in exchange rate,C.an increase in output,D.a decrease...
The Marshall-Lerner Condition states that
A.depreciation always has a favorable effect on the currentB.import dependency reinforces the effects of depreciation on the current account.C.high elasticity of exports is suffici...
