Multiple Choice
If the economy starts in long-run equilibrium, a permanent fiscal expansion will cause
A) an increase in exchange rate, E.
B) a decrease in exchange rate, E.
C) an increase in output, Y.
D) a decrease in output, Y.
E) shifting of the AA curve up and to the right.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q93: Which of the following is the MOST
Q94: In the short run, a permanent increase
Q95: Which of the following is TRUE of
Q96: The Marshall-Lerner condition holds that a country's
Q97: How would you define a DD schedule?<br>A)
Q99: Explain how the AA schedule is derived.
Q100: In practice, many U.S. import prices tend
Q101: What is inflation bias?<br> What measures have
Q102: How does a rise in real income
Q103: When an economy is in a liquidity