Multiple Choice
Econia and Macroland are each other's main trading partner. Which statement correctly identifies an event that would cause Econia's aggregate demand to rise and Macroland's aggregate demand to fall?
A) Inflation is higher in Econia than Macroland.
B) Inflation is lower in Econia than Macroland.
C) Econia's currency appreciates in value compared to Macroland's currency.
D) Econia's currency depreciates in value compared to Macroland's currency.
Correct Answer:
Verified
Correct Answer:
Verified
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