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Refer to the Graph Shown

Question 3

Multiple Choice

Refer to the graph shown. The shift in the graph from D1 to D2 shows how a contractionary U.S. fiscal policy can cause a decrease in: Refer to the graph shown. The shift in the graph from D1 to D2 shows how a contractionary U.S. fiscal policy can cause a decrease in: A) prices that raises the dollar's value. B) interest rates that reduces the dollar's value. C) prices that reduces the dollar's value. D) interest rates that raises the dollar's value.


A) prices that raises the dollar's value.
B) interest rates that reduces the dollar's value.
C) prices that reduces the dollar's value.
D) interest rates that raises the dollar's value.

Correct Answer:

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