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    Macroeconomics Principles and Policy Study Set 2
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    Exam 36: Exchange Rates and the Macroeconomy
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    Figure 36-7 In Figure 36-7, There Are Three Aggregate Expenditure Functions
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Figure 36-7 In Figure 36-7, There Are Three Aggregate Expenditure Functions

Question 162

Question 162

Multiple Choice

Figure 36-7
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 B to A? A)  A recession in Southeast Asia B)  An economic expansion in Japan C)  A depreciation of the dollar D)  An increase in the interest rate
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 B to A?


A) A recession in Southeast Asia
B) An economic expansion in Japan
C) A depreciation of the dollar
D) An increase in the interest rate

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