Multiple Choice
Figure 36-7
-In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X − IM) for an open economy.Which of the following would cause a movement from A to B?
A) An increase in interest rates
B) An appreciation of the dollar
C) A depreciation of the dollar
D) An increase in the U.S.price level
Correct Answer:

Verified
Correct Answer:
Verified
Q4: A currency appreciation should<br>A)reduce net exports and
Q5: In an open economy, the government deficit
Q6: Because the United States is highly integrated
Q7: Suppose that the Fed decides to increase
Q8: Figure 36-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-7
Q10: When the dollar depreciates, the prices of
Q11: Expansionary fiscal policy in an open economy<br>A)leads
Q12: An open economy is one that trades
Q13: Figure 36-6<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-6
Q14: Which of the following is correct?<br>A)IM +