Solved

In an Open Economy,a Shift Down and to the Left

Question 41

Multiple Choice

In an open economy,a shift down and to the left of the IS curve could have been caused by


A) a decline in the foreign real interest rate.
B) an increase in the demand for domestic goods relative to foreign goods.
C) an increase in foreign output.
D) a decline in domestic output.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q36: A decline in domestic output would cause

Q37: When the euro falls in value relative

Q38: Suppose the real exchange rate is 10,the

Q39: An increase in foreign output would cause

Q40: There's been a real depreciation of the

Q42: Three-wheel cars made in North Edsel are

Q43: Compared with a system of fixed exchange

Q44: In the Keynesian model of an open

Q45: Describe the effects of contractionary fiscal policy

Q46: The rapid depreciation in the dollar from